Go to Admin » Appearance » Widgets » and move Gabfire Widget: Social into that MastheadOverlay zone
In-flight bandwidth and connectivity suppliers Global Eagle Entertainment (GEE) has started paying cash compensation to its creditors and lenders because it has failed to report its cash position and revolving credit outstanding balance on time.
In a statement filed to the USA’s Securities & Exchange Commission (SEC) on July 12th GEE says that it has paid out some $4 million as compensation, plus $1.4 million in fees, as part of a Credit Agreement with its lenders, signed on June 29th.
GEE added that its cash position as at July 11th was about $69 million, of which about $31 million was held by non-US subsidiary companies. GEE says that it has a $50 million revolving credit facility in place.
The June 29th restructured Agreement saw GEE – and its lenders – agree that GEE did not necessarily have to file its Earnings release, due on July 31st, until September 15th. However, the Agreement also said that it would have to pay fees equal to 0.25 per cent “of the aggregate principal amount of the Revolving Credit Commitments and Term Loans held by the Consenting Lenders as of June 30th 2017.”
On June 28th GEE filed fresh guidance for the year to the SEC (in the absence of a more normal Q4/annual statement) that it expected to achieve full-year revenues for 2016 “at the lower end of the $530-538 million”.
GEE said it had equipped 66 additional aircraft in the first 6-months of 2017, and was now supplying connectivity to a total of 864 aircraft. It expected a similar number of installations in the second half of the year. Fresh orders had been received, via Boeing, for Poland’s LOT airline and Mauritania Airlines.
It had also supplied live TV to ion 4 new cruise ships and additional WiFi services on 5 new cruise vessels. It had also signed an agreement with REI, the largest integrator of video and audio electronics for motor coaches in North America.