Speedcast gets $395m to exit bankruptcy
August 14, 2020
By Chris Forrester
Australian satellite services business Speedcast looks likely to sell itself to its former lender Centrebridge Partners for $395 million (€334.4m).
However, the deal, if agreed by the bankruptcy court, could leave its other creditors unsatisfied.
Sydney-based Speedcast says it has received a “commitment” from Centrebridge along with an offer by Centrebridge to fund Speedcast’s debtor-in-possession trading to the tune of $220 million.
The Speedcast restructuring scheme makes no plan for converting investments made by shareholders into new equity in the business once the bankruptcy is concluded.
Speedcast operates almost globally with more than 2000 clients spread over 140 countries.
It fell into bankruptcy protection following trading losses and not helped by the Coronavirus which affected the holiday cruise market, which made up one of Speedcast’s key client sectors.