Intelsat secures support for debt-slashing plan

Intelsat secures support for debt-slashing plan

Steve Spengler - Intelsat.jpg

Intelsat says it has gained support from key creditor groups on the terms of an extensive financial restructuring that would cut the satellite operator’s debt by more than half, from almost $15 billion to $7 billion.

The company says its reorganisation plan, filed as part of its Chapter 11 proceedings pending before a US bankruptcy court in Virginia, will position it for long-term success and has the backing of holders of $11 billion – or nearly 75% – of its funded debt. Intelsat is seeking to gain related approvals and establish voting procedures for the plan at a hearing scheduled for 1 September.

The firm hopes to emerge from Chapter 11 by the end of 2021, after it filed for bankruptcy protection in May 2020 – with CEO Stephen Spengler (pictured) highlighting at the time “substantial legacy debt”.

Under its reorganisation plan, Intelsat would emerge as a private company with the support of new equity owners and a vision for becoming publicly traded again within the next five years.

The company says that while the financial restructuring process has been going on, it has made headway on a number of technological innovations, including the building of what it describes as “the world’s first global 5G satellite-based, software-defined, unified network of networks”.


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