COLORADO SPRINGS — Intelsat has amended its restructuring system to exit Chapter 11 individual bankruptcy protection later on this 12 months, securing the assistance of holders of almost 75% of its debt.
Very similar to the approach the satellite operator introduced Feb. 12, the restructuring would slash its debt by extra than half from nearly $15 billion to $7 billion.
Having said that, if this new plan goes as a result of, Intelsat would no longer arise as a publicly traded company. Under the outdated plan, Intelsat would have issued new inventory with 95% of the shares going to unsecured lenders of subsidiary Intelsat Jackson.
Intelsat said Aug. 24 that holders of about $11 billion of its personal debt guidance the amended approach. When the corporation declared the primary system in February, it mentioned it experienced bought the nod of holders of only about $3.8 billion of the credit card debt.
“The Amended Prepare presents that Intelsat will emerge as a private organization, with the assistance of new fairness owners, to ideal progress its strategic targets and speed up its expansion trajectory, with a route to turning into publicly traded again at some stage in the next five decades,” Intelsat said in the Aug. 24 announcement.
Intelsat is searching for acceptance from the U.S. Individual bankruptcy Court docket for the Jap District of Virginia for the amended program, and to established up a vote on it at a listening to scheduled for Sept. 1.
The approval course of action for the strategy is not dependent on the result of legal action from the firm from satellite operator SES, which is one particular of Intelsat’s most significant lenders.
SES is searching for at least $1.8 billion in damages pursuing Intelsat’s withdrawal from an alliance that SES stated was established up to evenly break up proceeds for clearing C-band spectrum in the United States.
Intelsat argues the agreement was invalidated when the Federal Communications Fee decided to run an auction for the spectrum, instead of a course of action managed by C-Band Alliance customers.
A closed listening to on the C-band dispute, also getting place at the U.S. Bankruptcy Court for the Jap District of Virginia, is owing to start Sept. 20.
If SES wins the circumstance, Intelsat would have to amend its restructuring prepare all over again and seek credit card debt holder approvals.