Bill Barney resigns as CEO of RCom

Bill Barney has stepped down as the CEO of Reliance Communications (RCom). He will now focus on the corporate restructuring of Global Cloud Xchange (GCX), an RCom subsidiary which recently filed for bankruptcy protection in a US court. He is the chairman and CEO of GCX.

He has served in RCom’s leadership post for the last three years .

GCX, an undersea cable company, filed for bankruptcy protection last week after missing payments on its $350 million of 7% bonds that matured in the beginning of August.

“With GCX’s recent voluntary Chapter 11 filing, it will be in the best interest of both RCOM and GCX for me to step down at this time to focus on GCX restructuring. Upon emergence from this process, GCX expects to be well-positioned to aggressively pursue our business plan independent of the overhang caused by our corporate parent’s challenges,” Barney said in a statement on Tuesday.

GCX had earlier stated that it has chalked out reorganization plans which outlines ways that includes reduction of $150 million in bond debt, amongst other measures. The cable firm had said that 75% of its lenders support its plans.

Parent company RCom too is undergoing insolvency process, buckling under a debt of Rs 46,000 crore.