Intelsat’s to participate in the forthcoming clearance of C-band spectrum in the United States has led to the satellite operator to seek Chapter 11 bankruptcy protection.
The company has announced a financial restructuring to make what it’s described as a “substantial reduction of Intelsat’s legacy debt burden”.
It’s in line to receive $4.87 billion of accelerated relocation payments, but to do this needs to spend more than $1 billion on clearing activities, and soon. It has already secured a commitment for $1 billion of new financing.
“This is a transformational moment in the history of our company,” said Stephen Spengler, Chief Executive Officer of Intelsat. “Intelsat is the pioneer and foundational architect of the satellite industry. For more than 50 years, we have been respected for quality, innovation, sector leadership, and premium services. Our success has come despite being burdened in recent years by substantial legacy debt. Now is the time to change that.”
Intelsat says its day-to-day operations will continue, including the launch of new satellites, and investment in ground networks.
No changes to the Company’s operations or workforce are planned.