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Intelsat Files for Bankruptcy PDF Print E-mail
Monday, 18 May 2020 06:22


Satellite operator Intelsat SA filed for Chapter 11 bankruptcy protection, making it the latest casualty of severe business disruptions caused by the COVID-19 pandemic.

Intelsat says that its current plan involves no changes to the day-to-day operation of the company, or any reduction in headcount. The company also said that it has secured $1 billion in committed new financing, which will come in the form of debtor-in-position funds, subject to court approval. That just describes any company that plans to continue to operate its business while also undergoing Chapter 11 bankruptcy proceedings.

“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. We intend to move forward with the accelerated clearing of C-band spectrum in the United States and to achieve a comprehensive solution that would result in a stronger balance sheet. This will position us to invest and pursue our strategic growth objectives, build on our strengths, and serve the mission-critical needs of our customers with additional resources and wind in our sails.”

Intelsat is among a number of companies that will participate in the accelerated clearing of C-band spectrum under the Federal Communications Commission (FCC) order.

"To meet the FCC's accelerated clearing deadlines and ultimately be eligible to receive $4.87 billion of accelerated relocation payments, Intelsat needs to spend more than $1 billion on clearing activities," the Luxembourg-based company said in a statement.

Intelsat General, which serves the company’s U.S. commercial, government and allied military customers, is not part of the Chapter 11 proceedings, the company said.


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