Bankrupt Intelsat Files Restructuring Plan to Halve Debt
- The satellite company proposes to trim debt to $7 billion
- Intelsat Jackson unsecured creditors to convert debt to equity
Photographer: Nicolas Armer/dpa/ZUMA/Getty Images
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Intelsat SA, the bankrupt satellite company, reached an agreement with some of its creditors on a plan that would hand ownership to unsecured bondholders and halve its debt load.
The McLean, Virginia-based company filed a plan to cut its debt to $7 billion. The proposal has the support of creditors holding about $3.8 billion of its obligations, according to a statement, suggesting holders of about 25% of debt have agreed to the plan. The Intelsat Jackson unit’s unsecured bondholders would take control of the new company by converting their holdings to new shares, according to court papers.