Satellite operator Intelsat has emerged from its Chapter 11 reconstruction.
The financial restructuring sees Intelsat now operating as a private company with a strengthened capital structure. The announcement follows news that the company received regulatory approvals for the plan.
The plan of reorganisation, which was supported by all creditor groups and confirmed by the Bankruptcy Court on December 16, 2021, has reduced Intelsat’s debt by more than half, from approximately US$16 billion to US$7 billion. The company has obtained US$6.7 billion in new financing, made up of a revolving credit facility, term loan, and secured notes.
Intelsat said this new structure means that it is “ now best positioned for long-term success as it continues to innovate and bring new services to market.”
Coinciding with the emergence, Intelsat has created a new board of directors. This is made up of the company’s CEO Stephen Spengler, and six new directors including chair Lisa Hammitt.
Commenting on the news, Spengler said: “For more than 50 years, Intelsat has led innovation in our sector and delivered high-performing services for customers. Now that our financial restructuring has been completed successfully, we are driving Intelsat’s future development and growth from a position of even greater strength. We have significantly less debt as well as new financing to support our innovation and network plans, complementing our unparalleled global orbital and spectrum rights and strong operating model.
“We are positioned better than ever to fuel the success of our customers and partners, achieve our strategic objectives, and accelerate our growth. Building the world’s first global 5G satellite-based,software-defined, unified network is just one of Intelsat’s many groundbreaking projects well underway.”