Troubled Australian satellite facilities and services business SpeedCast has entered Chapter 11 bankruptcy protection in a US Federal bankruptcy court in the Southern District of Texas. It lists assets of between $500 million and some $1 billion as part of its bankruptcy plan.
Speedcast has struck a $90 million commitment from its lenders in order to continue operating as a ‘debtor in possession’ while it restructures itself. Market changes have made it “impossible” for Speedcast to complete its planned equity issue or a re-capitalisation, the company said.
The Court filing shows that its major debts are with Intelsat (itself struggling financially) to which it owes $45 million, and London-based Inmarsat ($24.8 million and $1.38 million), SES (via its New Skies subsidiary) $3.08 million, and O3b (another SES subsidiary) $3 million and SES Government Solutions ($1.54m).
Cash is also owed to AsiaSat ($2.5 million), APT Satellite ($1.79 million), Eutelsat ($1.77 million and $1.22 million),
The company says it is continuing to work as normal and hopes to exit Chapter 11 by the end of August.