Intelsat is considering commencing Chapter 11 bankruptcy proceedings if US regulators don’t increase the amount of compensation being offer for surrendering part of its C-band (3.7GHz to 4.2GHz) spectrum.
Bloomberg is reporting the satellite company has hired bankruptcy experts Kirkland & Ellis LLP to prepare for a potential restructuring.
The source told Bloomberg the Chapter 11 filing would delay the Federal Communications Commission (FCC) plan to auction of part of the C-band because assets belonging to Intelsat would be subject to court proceedings.
Intelsat is a part of the C-Band Alliance that has offered to run a private sale for the spectrum early this year. The regulator wants to release the spectrum for 5G services, the CBA says it wants to “facilitate safely and efficiently clearing and repurposing C-band spectrum”.
However, at a press conference last week FCC chairman Ajit Pai said the agency would continue with its plan for a public auction. Details of the plan are yet to be released, but a report from Reuters suggested compensation in the order of “low-single-digit billions” to move users to a different frequency range.
Contacted by Broadband TV News, Intelsat and the CBA declined to comment.
