Australia-based speciality satellite connectivity business Speedcast is ready to exit its Chapter 11 bankruptcy. The actual exit will be in mid-March.
The bankruptcy was taking place in the US Bankruptcy Court for the Southern District of Texas, and Judge Marvin Isgur approved the creditor settlement last week.
The company voluntary filed for bankruptcy protection and reconstruction back in April 2020 with some $689 million in debt, and not helped by its important relationships with the world’s cruise ship operators. The closing down of the cruise sector badly impacted its overall business.
Speedcast has been bought by Centrebridge Partners which will put an overall $500 million into the business in fresh equity to secure the company. Speedcast said the exit plan has received “unanimous support” from its board and has the support of a committee of its unsecured creditors, which also issued a letter recommending that all unsecured creditors vote to accept the plan. Centrebridge, the incoming buyer, had battled its position with Black Diamond with Speedcast in the happy position of having two rival suitors.
Secured creditors will each receive a small slice of $150 million allocated for their compensation. Unsecured creditors will share $25 million. Speedcast’s pre-bankruptcy shareholders will receive nothing.
Joe Spytek will be the company’s CEO. He was previously president and CCO.