Judge Keith Phillips, presiding over Intelsat’s Chapter 11 bankruptcy reconstruction, has rejected the call for an independent examiner to be brought in.
The request was made by a small group of equity shareholders to investigate claims of potential mismanagement and other ways to bring in more money for creditors that they say the company has ignored.
Judge Phillips issued his ruling during a virtual hearing on Wednesday, some 40 days before he is set to consider Intelsat’s proposed reorganisation plan for approval. The judge said he did not believe there was sufficient time before the confirmation hearing for an examiner to conduct a meaningful investigation.
The equity group, which represents about 2 per cent of Intelsat SA shareholders, had argued that the reconstruction plan is improperly designed solely for the benefit of the Intelsat affiliates’ creditors, rather than creditors and shareholders of the parent entity.
However, the judge left the door slightly open by telling the equity group that they could revisit their Motion should he deny Intelsat’s confirmation plan in November.