Intelsat has filed for Chapter 11 Bankruptcy as it seeks to facilitate financial restructuring as it prepares to participate accelerated clearing of C-band spectrum under the Federal Communications Commission order in support of a build-out of 5G wireless infrastructure in the US.
The Company is also managing the economic slowdown impacting several of its end markets caused by the COVID-19 global health crisis.
“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 US 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.”
To facilitate the financial restructuring, Intelsat and certain of its subsidiaries have filed voluntary
While it moves as quickly as possible through the restructuring process, Intelsat’s day-to-day operations, engagement with customers and partners, and capital investments will continue as usual. The Company will continue to drive its business forward – launching new satellites, investing in its ground networks, developing new services, and progressing Intelsat’s next generation network and service strategy at full speed. No changes to the Company’s operations or workforce are planned.
In October 2019, Intelsat 39 (main picture) which provides video distribution and connectivity services for mobile network operators, enterprises, governmental entities, as well as aeronautical and maritime service providers operating in Africa, Asia, Europe and the Middle East, entered into commercial service.
