Global Cloud Xchange Achieves Forbearance Agreement With 87 Percent of Its Bondholders in Advance of the Maturity of the Senior Secured Notes Issued by GCX Limited

LONDON--()--Global Cloud Xchange (GCX) today announced that the company has reached a forbearance agreement with an 87 percent group of its bondholders that provides additional time to discuss options related to the upcoming maturity of the $350m 7.00% Senior Secured Notes issued by GCX Limited.

Under the terms of the agreement, bondholders have committed not to take action for a minimum period of two weeks with the possibility of extending the agreement for an additional two weeks, assuming GCX continues to progress in its negotiations.

We appreciate our lenders continued support as we take these next steps and look forward to using the additional time the forbearance agreement provides to pursue the desired refinancing transaction under the best possible terms,” said Bill Barney, Chairman and CEO, GCX. “Meanwhile, we continue to operate as usual as a fundamentally strong company that is uniquely positioned to capture opportunities in our fast-growing markets.”

The forbearance agreement provides for, among other things, a two per cent consent fee payable to forbearing noteholders and payment of accrued interest to all noteholders (in each case with such amounts being added to the principal amount of the notes rather than being paid in cash); a fee equal to five percent of the outstanding principal amount of the bonds payable to forbearing noteholders if the notes are subsequently refinanced in full; the appointment of a Senior Managing Director of FTI Consulting as a Chief Restructuring Officer; and certain requirements that need to be fulfilled to maintain the forbearance agreement.

ABOUT GLOBAL CLOUD XCHANGE

Global Cloud Xchange (GCX), a subsidiary of Reliance Communications, offers a comprehensive portfolio of solutions customized for carriers, enterprises and new media companies. GCX owns the world’s largest private undersea cable system spanning more than 68,000 route kms which, seamlessly integrated with Reliance Communications’ 200,000 route kms of domestic optic fiber backbone, provides a robust Global Service Delivery Platform. With connections to 40 key business markets worldwide spanning Asia, North America, Europe and the Middle East, GCX delivers leading edge next generation Enterprise solutions to more than 160 countries globally across its Cloud Delivery Network. www.globalcloudxchange.com

Contacts

GCX:
Lorain Wong
Email: lwong@globalcloudxchange.com
Tel: +852 2848 0075

Lazard:
Richard Stables
Email: richard.stables@lazard.com
Tel: +44 (0) 20 7187 2000

Ken Ziman
Email: ken.ziman@lazard.com
Tel: +1 (212) 632 6000

FTI Consulting:
Michael Katzenstein 
Email: mike.katzenstein@fticonsulting.com
Tel: +1 (212) 651-7169

Don Harer
Email: don.harer@fticonsulting.com
Tel: +1 (312) 630-4803

Contacts

GCX:
Lorain Wong
Email: lwong@globalcloudxchange.com
Tel: +852 2848 0075

Lazard:
Richard Stables
Email: richard.stables@lazard.com
Tel: +44 (0) 20 7187 2000

Ken Ziman
Email: ken.ziman@lazard.com
Tel: +1 (212) 632 6000

FTI Consulting:
Michael Katzenstein 
Email: mike.katzenstein@fticonsulting.com
Tel: +1 (212) 651-7169

Don Harer
Email: don.harer@fticonsulting.com
Tel: +1 (312) 630-4803