Intelsat will emerge from bankruptcy in early 2022 after the US Bankruptcy Court for the Eastern District of Virginia, Richmond Division approved its Plan of Reorganisation.
Under the plan, the satellite communications company will see its debt cut by more than half from approximately $16 billion to $7 billion. The proposals have the support of all of the company’s creditor groups and follows an extensive period of negotiation.
“Today’s Plan confirmation is a key milestone in Intelsat’s transformation. We have achieved all of the goals we identified at the outset of the process, including a substantial reduction of our legacy debt burden,” said Intelsat’s Chief Executive Officer, Stephen Spengler.
While under bankruptcy protection Intelsat has still managed to operate its business without issue. It has accelerated the clearance of C-band spectrum and acquired a commercial aviation business from Gogo.
Under the terms of the Plan and with exit financing commitments already obtained, Intelsat will emerge as a private company, with the support of new equity owners, and access to $7.875 billion in capital, and a significantly deleveraged balance sheet.