Intelsat proceeding with FCC auction plan
April 30, 2020
By Chris Forrester
Intelsat CEO Steve Spengler has said that the operator is proceeding as the FCC laid out in its 225-page order in regard to the auction of C-band spectrum over the US.
However, he also placed something of a question mark on future plans by adding “if we choose to proceed with clearing C-band” and which would require hundreds of millions of dollars being laid out ahead of any reimbursement.
Spengler, in an interview with Via Satellite, declined to comment on past reports that Intelsat was considering a Chapter 11 bankruptcy protection. He admitted that Intelsat was in a “transition” period, but that the company was moving forward, and that the company was in discussions with new and existing stakeholders over a range of financing options.
His comments come on the back of reports that Intelsat is looking to borrow an extra $750 million in order to finance the switch-over of frequencies and fund new satellite in order to complete its obligations to the FCC’s C-band scheme.
Intelsat also suspended a $125 million interest payment on April 15th for a permitted 30-days.
Proceeding with the FCC’s C-band plan would see Intelsat qualify for a $5 billion ‘incentive’ payment, and the full reimbursement of all its expenses related to the plan.