Intelsat announced a deal with its main creditors to restructure its debt, putting the satellite company on a path to exiting Chapter 11 bankruptcy protection by year-end. It's filed the proposed restructuring plan with the court in Virginia managing its bankruptcy proceedings for approval.
Holders of around USD 11 billion in Intelsat debt, or nearly 75 percent of the total, have pledged their support for the restructuring. If completed, the deal would reduce the company's debt by more than half, from nearly USD 15 billion to USD 7 billion.
A court hearing on 01 September is expected to lay out the procedures for seeking formal approval from debtholders in a vote. If all goes to plan, Intelsat expects to complete the process and emerge from Chapter 11 by the end of 2021.
Debtholders will acquire equity in the company as part of the deal. Intelsat has committed to becoming a publicly traded company again at some point in the next five years, providing an eventual exit for the investors.
