Intelsat’s Chapter 11 bankruptcy court on December 9th heard detailed evidence from one of its reconstruction financial advisors. This was Day 4 of a probable 10-day legal process to see Intelsat’s exit from bankruptcy approved.
However, the expert was challenged as to whether he had examined alternate methods to exit bankruptcy.
Also, on December 9th, Intelsat itself filed information (on a SEC Form 8-K from Luxembourg-based Intelsat Jackson Holdings S.A.) confirming that it had reached an agreement on its refinancing once the bankruptcy process is wrapped up. “[Intelsat] intends to file a motion seeking the Bankruptcy Court’s approval to enter into the Financing Transaction to be heard by the Bankruptcy Court at a later date, which has not yet been scheduled. The Financing Commitment Letters include a reasonably detailed summary description of the terms of the proposed Financing Transaction,” said the statement.
Barclays Bank will lead the new debt-funding, which would see some billions of dollars raised in fresh debt, plus revolving credit facilities, and must not exceed $8 billion, says the document.
The proposal from Intelsat is contingent on its exit plan being approved.
However, one of the major elements being heard by Intelsat’s Chapter 11 exit plan Confirmation Hearings at its bankruptcy court is which Intelsat-related company should receive the FCC’s C-band incentive payments. The decision will affect how the bankruptcy’s compensation payments to creditors is handled.