Intelsat’s restructuring plan has been approved by the US Bankruptcy Court for the Eastern District of Virginia in Richmond. The company is now expected to emerge from Chapter 11 bankruptcy protection in early 2022. It still has to receive some regulatory approvals, complete certain corporate actions, and satisfy some other usual conditions.
The plan will more than halve Intelsat’s debt to USD 7 billion from 16 billion and help the company as it brings new services to market. The plan was supported by all creditor groups across Intelsat’s capital structure.
Under the terms of the plan and exit financing commitments already obtained, Intelsat will emerge as a private company with the support of new equity owners and access to USD 7.875 billion in capital, plus a significantly deleveraged balance sheet. Intelsat will continue to reduce debt upon receipt of USD 4.87 billion of accelerated relocation payments in connection with the C-band spectrum clearing project, with USD 1.2 billion of the total already approved by the Federal Communications Commission for receipt in January.
