Moody’s downgrades Avanti; Inmarsat a buyer?
August 1, 2016
By Chris Forrester
Moody’s Financial Services has downgraded London-based satellite operator Avanti Communications, saying – in essence – a default is “almost inevitable” and that Avanti is unlikely to meet its financial obligations in 2016” and adding that there is now potential for marking Avanti’s debt bonds down to CC or ‘junk bond’ status unless the operator can secure meaningful additional financing.
Meanwhile, Sky News reported that another – and much larger – London-based satellite operator, Inmarsat, which specialises in maritime and aircraft connectivity, could be about to mop up some Avanti assets.
Sky News said that the approach from Inmarsat was a preliminary one and talks between the two companies remain at an early stage, according to people close to the situation.
Avanti, back in early July said it was discussing a number of options as part of a “strategic review”
It is known that a number of other – and rival – operators have also taken a look at Avanti’s assets, but the current over-supply of satellite bandwidth does not help Avanti’s prospects.