SES vs Intelsat: What’s at stake?
February 10, 2022
The 50/50 legal action between SES and Intelsat continues. SES, in a statement, reminded interested parties as to its claims and core argument.
SES originally sought $421 million in direct compensatory damages as well as punitive damages for a total claim of about $1.8 billion.
Under a settlement related to Intelsat’s exit plan from its Chapter 11 bankruptcy, SES has dropped its request for punitive damages but continues to seek $421 million in direct compensatory claims against each of three Intelsat entities—Intelsat US, Intelsat License, and Intelsat Jackson.
In addition, SES has a constructive trust claim against Intelsat. As part of Intelsat’s bankruptcy exit plan settlement, SES has agreed to limit its cash recovery to $200 million if the court imposes a “constructive trust.”
If the court doesn’t impose such a trust but determines SES has valid claims at the three Intelsat entities, the aggregate recovery would be about $155 million based on the proportional share of funds payable to unsecured creditors at such entities.