GTT Communications earlier this year announced it would begin liquidating assets it had acquired over the past several years. Today, GTT made good on that promise in selecting Credit Suisse and Goldman Sachs to help the company offload its infrastructure division.

“The appointment of Credit Suisse and Goldman Sachs is an important step in our process to explore the sale of our Infrastructure Division,” stated GTT CEO and President Rick Calder in a statement. “This potential divestiture in no way alters the execution of GTT’s core strategy of providing cloud networking services to large and multinational clients as we deliver on our purpose of connecting people to any location in the world and to every Application in the cloud.”

The struggling SD-WAN service provider's stock rebounded on the news, surging more than 24% to $6.82 per share, at the time of publication.

[caption id="attachment_86969" align="aligncenter" width="681"] In response to hiring Credit Suisse and Goldman Sachs to assist with the sale of its infrastructure assets, GTT's stock price rebounded up more than 24% to $6.82 per share. - Photo credit Seeking Alpha.[/caption]

GTT's infrastructure division is made up of it's terrestrial, pan-European fiber network, sub-sea transatlantic fiber, and data center infrastructure acquired with the purchases of Interoute and Hibernia.

The Interoute acquisition was particularly messy, with GTT still working through billing issues that had, as of the end of the second quarter, ultimately cost the company more than $6 million in bill credits. Calder told investors during the company's third-quarter earnings call that those billing challenges were largely behind the company.

Hibernia and Interoute are just two of the many acquisitions that have left GTT with a glut of non-strategic assets. Since 2017, the company has acquired 10 businesses in the telco space.

GTT's former CFO Michael Sicoli said during the company's second-quarter earnings call that the sale of these non-essential, non-strategic assets should net the company “north of $100 million.” However, that estimate did not take into account the company's fiber business. During the company's Q3 earnings call, Calder expressed confidence that by selling off assets the company could significantly deleverage GTT's balance sheet and reduce capital expenditures.

However, it remains to be seen whether this will be enough to turn GTT's dismal financial situation around. The company has struggled to make a profit, posting net losses the last two quarters. And following the company's particularly bad Q2, its stock price plunged to its lowest level in five years.

Even if Sicoli's predictions prove accurate, the company still faces a mountain of long-term debt, to the tune of $3.2 billion.

Despite this, both Calder remains confident the company will return to organic-driven growth.

Editor's Note: This story has been updated to clarify that Sicoli was no longer serving as GTT's CFO. A Spokesperson for GTT also notes that the $100 million estimated valuations of non-essential, non-strategic assets did not include the company's fiber business, however, a new estimate of worth was not given.