Intelsat confirms it wants to buy
August 28, 2020
Intelsat, despite its Chapter 11 bankruptcy position, is looking to acquire a business.
There are already market rumours that in-flight connectivity company Gogo is the target company.
Intelsat, in its court documents, say: “The Debtors believe that, in order to remain competitive and to maximize their value as a go-forward enterprise, they must be able to identify and develop new streams of revenue. The Debtors believe that acquiring the Target will provide significant value to the Debtors’ estates.”
Intelsat has formally asked its bankruptcy court for permission to make (“consummate a proposed transaction”) the purchase. The only snag for non-insiders is that the name of the target business is redacted and struck out from the court documents.
Intelsat is permitted to make the suggestion because it is trading as a “debtor in possession” of its business. Intelsat has promised to make a statement to the Securities & Exchange Commission “shortly following” the purchase being agreed.
Intelsat made its “indication of interest” on July 2nd. On July 27th entered into due-diligence on the target business and some 5000 documents related to the business. On August 16th the sellers allowed a further 14 days to Intelsat and suspended access to any other interested parties.
Intelsat wants the seller’s name to be kept private as well as the purchase price and the inevitable proprietary information which is not usually in the public domain but because of the bankruptcy would be revealed.
The application invites objections to the plan but warns that the decision to permit the action is to be heard on August 31st.
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- SpaceX breaks records for re-use launchers
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- Intelsat contemplates next steps