Key creditor groups of Intelsat have agreed to vote in favour of a comprehensive financial restructuring that would reduce the Company’s debt by more than half – from nearly US$15 billion to $7 billion.
The Company has filed an Amended Plan of Reorganization in its Chapter 11 proceedings pending before the US Bankruptcy Court for the Eastern District of Virginia, Richmond Division, accompanied by an explanatory Disclosure Statement. The Amended Plan has the support of holders of approximately $11 billion, or nearly 75%, of the Company’s funded debt. These supporting creditors have executed a Plan Support Agreement that binds their support for the Company’s Amended Plan.
Today’s filings and the widespread consensus in support of the Amended Plan should help to achieve completion of the financial restructuring process and the Company’s emergence from Chapter 11 by the end of 2021. The Amended Plan provides that Intelsat will emerge as a private company, with the support of new equity owners, to best advance its strategic objectives and accelerate its growth trajectory, with a path to becoming publicly traded again at some point in the next five years.
