Intelsat is in Chapter 11 bankruptcy and is restructuring itself. On June 9th, it gained bankruptcy court approval to access a $1 billion loan under ‘debtor in possession’ rules and post-petition financing.
Judge Keith Phillips granted Intelsat immediate access to $500 million (out of the $1 billion) in order to keep its day-to-day operations going (working capital). Approval also came for Intelsat’s C-band frequency clearing and relocation scheme.
The $1 billion borrowing will be handled by Intelsat Jackson, one of the operator’s sister businesses.
The cash comes from Credit Suisse (via its Cayman Islands branch).
Intelsat entered Chapter 11 on May 13th and is being ‘fast tracked’ for reconstruction. Intelsat is looking to cut its significant debts and financial borrowings by about half. It is also proceeding with the C-band clearances required by the FCC and thus qualify for some $5 billion in incentive payments from the FCC.
The court’s next omnibus hearing into the bankruptcy is set for June 30th when the court will also address the International Telecommunications Satellite Organization (ITSO)’s claim against Intelsat.