Avanti wraps financial reconstruction
April 14, 2022
By Chris Forrester
London-based Avanti Communications has recapitalised and cut its debt burden in the process.
Avanti has been under extreme financial stress for some time and entered Chapter 11 bankruptcy reconstruction in 2018. The company, which supplies Ka-band satellite capacity over Europe, the MENA region and Africa, has faced recent pressure because of the risk of a default on its borrowings and debts and interest obligations.
Avanti has brought in a new investor and as a result has reduced its debt from $810 million (€742.2m) to a much more manageable $260 million.
In a note to the market April 13 the company said: “Funds (or subsidiaries of such funds) and/or accounts managed, advised or controlled by HPS Investment Partners LLC or affiliates/subsidiaries thereof ($80 billion leading global investment firm) and Solus Alternative Asset Management LP (leading US registered investment advisor specialising in corporate recapitalisations) will become the principal shareholders.”
Kyle Whitehill, Avanti CEO, said “Today’s completion of our planned financial recapitalisation marks a major milestone in Avanti’s transformation as a business. Achieving this significant reduction in our legacy debt burden leaves us in a strong position to continue the growth of our business and to deliver our mission of connecting the unconnected across Europe, the Middle East & Africa through our HYLAS fleet of Ka-band satellites.”
Avanti operates five satellites.
The financial reconstruction also sees Avanti pass to Glas Trust Corp. Ltd. (as one of the Primary Security Agents which also includes The Bank of New York Mellon) new or extensions to debentures on some assets of Avanti’s Hylas 2 (AH2) satellite and payment obligations to Glas Trust. The agreement is in the form of a formal charge on the company’s assets and signed on March 22 between the parties.
Some of Avanti’s subsidiary/related companies are officially in default as regards their financial filings to the UK’s Companies House. For example, Avanti Communications Group plc should have filed by June 30 2021 (for the accounts up to Dec 31st 2020) and are now overdue.