Intelsat amends bankruptcy plan with majority backing

Intelsat headquarters in the United States: Photo: Intelsat

Intelsat presented an amended plan to lift the satellite operator out of Chapter 11 bankruptcy, with binding backing from holders of nearly 75% of the company’s debt.

If approved, this plan will cut Intelsat’s debt by more than half, from nearly $ 15 billion to $ 7 billion. In addition, Intelsat will no longer be a publicly traded company.

“The amended plan foresees that Intelsat will become a private company, with the support of new shareholders, to best advance its strategic objectives and accelerate its growth trajectory, with a path to become listed on the stock exchange again at some point in the years. next five years, “Intelsat said in a statement on Tuesday.

Intelsat filed the amended plan as part of its Chapter 11 proceeding pending in the United States Bankruptcy Court for the Eastern District of Virginia, Division of Richmond. A hearing is scheduled for September 1, 2021.

Intelsat has been in Chapter 11 bankruptcy since May 2020, when the company said it needed to restructure financially in order to fund the C-band compensation in order to receive payment as part of the FCC process. The operator previously released a plan in February 2021 – which would also have halve your debt – but was unable to obtain approval for the plan.

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