Intelsat bankruptcy exit plan adjourned
July 12, 2021
Intelsat, currently trading as a Debtor in Possession under Chapter 11 rules, has asked its bankruptcy court to start hearing its Disclosure Statement on August 11th.
The original wish was for the hearing to take place on July 27th, but that now looks likely to be postponed until August 11th, given that 28 says notice must be allowed for objections to be filed.
Intelsat filed its bankruptcy disclosure and exit plan, a 145-page document, back on February 12th. At the time, it had been hoped that by May 3rd a Confirmation Hearing would have been agreed for the exit plan itself.
Intelsat is now asking that the August 11th hearing approve its Disclosure Statement, its processes and procedures for the distribution of bankruptcy funds, the forms of ballot and notices regarding the exit plan, and setting a voting date for the overall exit process and other routine matters concerned with the actual process of exiting bankruptcy.
The Motion to the court lists all of Intelsat’s debt-holders many of which are spread through dozens of Intelsat intercompany and sister businesses. Many are entitled to vote on the exit plan dependent on whether the debt is in a ‘Voting Class’ or ‘Non-Voting Class’. Intelsat is recommending that holders of claims should vote to accept its exit plan.
There are a few hurdles, not least the SES vs Intelsat claim for a greater share of the FCC’s C-band incentive payments, plus the SES action for substantial damages to be levied against Intelsat. The bankruptcy judge can ring-fence these claims until a decision is resolved one way or another, although the court can approve the exit plan if its wishes.
The key dates for the SES claim against Intelsat are September 20th, when a trial is due to commence and take two weeks. By August 16th, both parties must inform the court of the witnesses they intend calling.
On June 23rd, Intelsat appointed a firm of restructuring advisors.