Reducing debt from $ 15 billion to $ 7 billion: This is the goal that Intelsat announced on Friday, February 12, according to reports.
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. To do this, the Luxembourg Satellite Communications Company wants to issue new shares, 95% of which will go to its subsidiary Jackson’s unsecured debtors (no specific security).
Intelsat claims that the project is subject to extensive negotiations with its lenders and resolves complex issues between them. It says it will benefit from the support of those who hold about $ 8.3.8 billion in debt. “Intelsat expects to continue to work with all stakeholders to gain additional support for their project.”
The company filed for bankruptcy in May 2020 seeking to clear its $ 15 billion debt and open funding for the purchase of satellites and to release C-band spectrum to US 5G networks. According to Space News, the company is expected to receive $ 86 4.86 billion from the US Federal Communications Commission auction. IntelSat has ordered seven satellites as part of its spectrum compensation plan, according to Space News.
The company has filed for bankruptcy on March 17, 2021 in connection with its restructuring plan. If approved, the company could exit Chapter 11 in the second half of 2021, according to its press release.
