Intelsat closer to bankruptcy exit

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A large set of documents have been sent to all parties involved in the Chapter 11 bankruptcy reconstruction of Intelsat.

Back on September 7th the bankruptcy court handling Intelsat’s affairs issued an order that the Confirmation Hearing on Intelsat’s ‘Disclosure Statement’ and latest ‘Plan of Reorganisation’ from bankruptcy will commence on November 8th.

The documents are contained in a USB flash drive sent to interested parties. The plan calls for a reduction of Intelsat’s debt burden from some $15 billion to about $7 billion. Some 75 per cent of Intelsat’s debt-holders have already agreed to the debt reduction.

The main thrust of the documentation calls on all holders of financial claims to enter their ballot votes, accepting or objecting to the exit plan. Votes have to be filed by October 29th.

Meanwhile, on September 29th the bankruptcy court will hear a Motion for the appointment of an Examiner (along with objections to the appointment). Intelsat says, in essence, the request is a last-ditch attempt to gain some leverage by equity holders who are expected to see little to nothing under the plan.

The sponsors of the Motion – who hold a modest 2 per cent of Intelsat’s equity – say Intelsat has completely ignored valuable net operating losses and potential causes of action that it believes could provide some recoveries to shareholders.

An examiner is necessary to probe the full value of the company’s assets because it has so far been “ignored or devalued without explanation” in the plan, the group said in documents filed to the court.


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