GTT announces a change in the management team
MCLEAN, Va., Dec. 08 2020 (GLOBE NEWSWIRE) — GTT Communications, Inc. (NYSE: GTT), a leading global provider of cloud networks for multinational customers, today announced that Chief Financial Officer Steven Berns has stepped down as Chief Financial Officer. The company has named Donna Granato, previously Senior Vice President of Finance, as interim Chief Financial Officer.
Mr. Berns has agreed to remain available as a resource for the company until January 31, 2021.
Ernie Ortega, Interim CEO of GTT, said: “We greatly appreciate Steven’s partnership, expertise, leadership and many contributions that have enabled GTT to navigate through this critical period. We thank Steven for his dedication to GTT and his support throughout the transition. I wish him the best in his future endeavours.
“We are very fortunate and excited to have Donna bring her expertise and leadership to us in the role of Interim Chief Financial Officer. Having worked with Mr. Berns for many years, Donna has been an integral part of GTT’s finance team since her arrival in June 2020. Her appointment will ensure that we continue to provide exceptional service to our valued customers, employees, suppliers and investors. .
“We are confident that Donna’s leadership will be invaluable as we work to complete the sale of GTT’s infrastructure division to I Squared Capital. We remain in advanced discussions ongoing regarding additional funding to meet our liquidity needs. »
Ms. Granato will report to Mr. Ortega.
About Donna Granato
Donna Granato has held financial and operational roles of increasing responsibility in areas such as investor relations, corporate finance, and mergers and acquisitions. She has extensive media and communications experience, having worked at CBS, Viacom, Tribune Company, Interpublic Group, MDC Partners and Omnicom. She also spent two years as a media investment banker at Salomon Smith Barney.
Ms. Granato is a Chartered Accountant. She graduated from Rider University’s undergraduate accounting program and earned an MBA from New York University.
GTT connects people across organizations, around the world and to all cloud applications. Our customers benefit from an exceptional service experience based on our core values of simplicity, speed and agility. GTT owns and operates a global Tier 1 Internet network and provides a full suite of cloud networking services. For more information about GTT (NYSE: GTT), please visit www.gtt.net.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and such statements are intended to be within the safe harbor provided herein. These statements are based on the current beliefs and expectations of GTT’s management and are subject to significant risks and uncertainties. The above statements regarding GTT’s discussions regarding additional financing and GTT’s proposed sale of its infrastructure division constitute forward-looking statements based on GTT’s current expectations. Because these forward-looking statements involve risks and uncertainties, many of which are beyond GTT’s control, there are important factors that could cause future events to differ materially from those mentioned in the forward-looking statements. These factors include, but are not limited to, the effects on GTT’s business and customers of general economic and financial conditions, as well as the following: (1) GTT and I Squared Capital (the “Buyer”) may not be able to obtain the necessary approvals for the pending GTT infrastructure sale transaction announced by GTT on October 16, 2020 (the “Transaction”) or related reorganization (the “Reorganization”) from governmental authorities in a timely manner, on terms acceptable to both sellers and buyer, or not at all; (2) GTT may not be able to obtain from its lenders or bondholders such other forbearances, waivers, consents, releases or other agreements as may be necessary to prevent a default under the Credit Agreement of GTT (the “Credit Agreement”) or GTT’s Deed of Trust for the Amounts. (the “Deed”) which may be necessary to satisfy the conditions of the closing of the Transaction, either on terms acceptable to GTT or not at all, in which case the sale and purchase agreement for the Transaction would terminate unless Buyer furnishes a waiver; (3) GTT may not be able to obtain the consent of certain parties to contracts with GTT and its subsidiaries which will be necessary for the full implementation of the Transaction or the Reorganization, on terms acceptable to GTT or not at all ; (4) GTT may not be able to obtain sufficient financing to enable it to complete the Transaction as required at the closing of the sale and purchase agreement of the Transaction; (5) the potential breach of other closing conditions under the sale and purchase agreement for the Transaction, which could result in the Transaction not occurring; (6) the potential inability of GTT to realize the anticipated benefits of the Transaction; (7) the risks of depending on Buyer for various critical transaction services and network services for an extended period under the Transition Services Agreement and the Master Services Agreement contemplated by the sale and purchase for the Transaction; (8) the potential impact of the announcement or completion of the Reorganization and the Transaction on relationships with third parties, including customers, employees and competitors; (9) the ability to attract new customers and retain existing customers in the intended manner; (10) GTT’s internal control over financial reporting may be insufficient or have weaknesses of which GTT is not currently aware or which have not been detected, and which, among other things, could affect GTT’s ability to appropriately provide for purchase price adjustment mechanisms in the sale and purchase agreement for the Transaction; (11) GTT may fail to comply with certain clauses relating to financial statement delivery obligations and representations regarding GTT’s financial statements contained in its financing agreements without obtaining an amendment and/or waiver thereof, which may result in (A) events of default under the Deed and the Credit Agreement, (B) if the Company is unable to obtain further agreements from creditors regarding forbearance from exercise of remedies, the acceleration of outstanding obligations under the Deed of Trust and GTT’s obligations under the Credit Agreement, and (C) GTT being unable to meet its obligations under that -this ; (12) existing cash balances and funds generated from operations may not be sufficient to fund GTT’s operations and meet its cash requirements; (13) GTT is subject to risks related to the actions of network providers and a concentrated number of providers and customers; (14) GTT could be subject to cyberattacks and other security breaches; (15) GTT’s network could suffer serious disruptions if certain sites suffer damage or if GTT adds functionalities and updates its network; (16) GTT is subject to risks related to purchase commitments with suppliers over longer periods or greater than the volumes committed by GTT’s underlying customers, or to sales commitments with customers that go beyond – beyond GTT’s commitments to its underlying suppliers; (17) GTT may not be able to establish and maintain peering relationships with other providers or agreements with carrier-neutral data center operators; (18) GTT’s business, operating results and financial condition are subject to the impacts of the COVID-19 pandemic and related market and economic conditions; (19) GTT may be affected by information systems that do not perform as expected or by consolidation, competition, regulation or a downturn in GTT’s industry; (20) GTT may be responsible for material that content providers post on its network; (21) GTT has generated net losses historically and may continue to do so; (22) GTT may fail to integrate future acquisitions or effectively manage its growth; (23) GTT may not be able to retain or hire key employees; (24) GTT recently announced management changes; (25) GTT is subject to risks related to the international operations of its business; (26) GTT could be affected by a future increase in tax levels; (27) GTT is highly indebted, which could prevent it from fulfilling its obligations under its loan agreements or expose GTT to interest rate risk; and (28) the review of certain issues relating to the recording and reporting of the cost of telecommunications services, certain intercompany transactions, bad debts, credit extended to customers and related internal controls (the “Review ”) and the completion and filing of GTT’s late returns. Quarterly reports on Form 10-Q for the period ended September 30, 2020 and June 30, 2020 may take longer than expected due to the timing or findings of the review or the expert firm’s review process -registered independent accountants of GTT. The foregoing list of factors is not exhaustive. GTT does not undertake to update forward-looking statements to reflect the impact of circumstances or events that may occur after the date of the forward-looking statements. For a discussion of a variety of risk factors affecting GTT’s business and prospects, see “Risk Factors” in GTT’s annual and quarterly reports filed with the SEC, including, but not limited to, its annual report on Form 10-K for the fiscal year ended December 31, 2019 and its quarterly report on Form 10-Q for the quarter ended March 31, 2020, which have been filed with the SEC and are available at from GTT (www.gtt.net) and on the SEC website (www.sec .gov).
GTT Media Inquiries:
Rachel Hawkins, LEWIS
GTT Investor Relations:
Jody Burfening/Carolyn Capaccio, LHA