In-Flight connectivity and broadband supplier Global Eagle Entertainment is suffering revenue problems because of the coronavirus.
Investor confidence is declining and the company itself says that its underlying contracts are safe enough but with passengers no longer flying anywhere and most cruise ships suspending sailings and cancelling their planned voyages, revenues are being impacted.
The company says it is negotiating downward its satellite contracts and extending its payment obligations.
Meanwhile it is pushing its focus on capacity and demand from those sectors which are neutral and even growing (energy, government, commercial shipping and non-governmental organisations.
The cruise industry was extremely important to Global Eagle (and to its competitors) but the operator says that it expects to see a ramping up of demand and the resumption of limited services from June this year.
Global Eagle has secured agreements with its lenders to delay publishing its 2019 numbers until mid-May (from April 16th) and to June 29th for its Q1 financials.
The company has also established a special committee to explore strategic transactions. It also announced a one-for-25 share restructuring as a reverse stock split. This was proposed at a special meeting of stockholders in March, and came into effect on April 16th. This was done in order to comply with NASDAQ rules and the impact is that there are now some 3.717 million shares in issue and down from 92.94 million.