Intelsat reduces $15 billion debt by more than half
Luxembourg, 15 February 2021. – Debt cut by more than half: Intelsat reduces the company’s debt from nearly $15 billion to $7 billion, the satellite operator announced.
Intelsat said it “obtained the support of key creditor constituencies on the terms of a comprehensive financial restructuring that would reduce the Company’s debt by more than half – from nearly $15 billion to $7 billion – and position the Company for long-term success”.
The company is filing a reorganization plan in its Chapter 11 proceedings which are pending before the U.S. Bankruptcy Court for the Eastern District of Virginia. This plan, which has been “the subject of extensive negotiations with the Company’s creditors and resolves a multitude of complex issues among them, has the support of holders of approximately $3.8 billion of the Company’s funded debt”, Intelsat said. “The Company is requesting a hearing on March 17, 2021 to seek Court approval of the Disclosure Statement and establish procedures to solicit votes on the Plan.The “filings and the significant consensus already achieved on the Plan pave the way for the Company’s emergence from the Chapter 11 proceedings in the second half of 2021”, Intelsat said.