Intelsat’s long journey, from May 13th 2020, to ending its Chapter 11 bankruptcy reconstruction, has its end in sight. Its bankruptcy court has planned an Omnibus hearing for today (January 6th at 11.00 am ET) in Virginia. The Court has already approved Intelsat’s exit plan.
Judge Keith Phillips will hear submissions on one remaining contested matter concerning Intelsat’s formal request to enter into its proposed Equity settlement which has to happen as its exit plan wraps up. However, certain Intelsat shareholders (acting together as the ‘HoldCo Group’) are objecting, and Judge Phillips will deliver his ruling.
A decision is key in that the 152-page Motion before the court includes the authorisation for Intelsat to repay its Debtor in Possession financing and trading costs incurred over the bankruptcy period. It also allows, if approved, Intelsat to organise its post-petition trading financing and new borrowings and credit facilities and to pay legal and professional debts incurred during the bankruptcy.
Most of the rest of the day will be taken up with Uncontested activity including a Motion to approve Intelsat’s final order and permitting Intelsat to obtain financing to the tune of $7.975 billion at the end of the process.
Another concerns the now resolved objections from the US Trustee, and involves much the same activity for post-petition financing.
Other elements under examination include a settlement with Boeing and which will permit Intelsat to enter into a settlement agreement with the aerospace company.