Intelsat’s key creditors “reserve rights”

A major suite of creditors of Intelsat (the Ad-Hoc/Convert Group) and which hold Intelsat’s 4.5 per cent convertible notes due 2025, are reserving their rights in Intelsat’s bankruptcy case.

In a filing to the court on September 3rd, the group of creditors say that Intelsat have “repeatedly touted their goal to try to build further consensus around the terms of an amended plan of reorganisation, which, at the September 1st 2021 omnibus hearing, the Court agreed was in all parties’ best interest.”

The Convert Group say that while they agree with the court’s judgement on September 1st that it is in the best interest of all parties to continue to explore the possibility of a consensual [bankruptcy exit] plan, and that they look forward to continuing to engage with Intelsat and other stakeholders to attempt a consensus, they nevertheless reserve all their rights.

“The Convert Group, however, reserves all rights to seek to terminate exclusivity based on further developments, including, without limitation, in the event the Debtors do not engage in good faith consensus-building.”