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Intelsat Overcomes Numerous Objections to Secure Bankruptcy Plan

  • Judge said he would approve plan after last-minute deal
  • Intelsat secures 11th hour settlement with hold-out creditors
Rendering of Intelsat 17 satellite

Rendering of Intelsat 17 satellite

Source: Intelsat/Business Wire

Intelsat SA, the satellite operator that has been in bankruptcy for more than 18 months, secured court approval for its restructuring plan after a trial and last-minute settlement that centered on who will get nearly $5 billion in future payments from the Federal Communications Commission.

The plan, which originally faced numerous objections but now has broad creditor support, will cut its debt load from about $16 billion and outlines about $7.9 billion in new borrowings for Intelsat to exit bankruptcy. The company negotiated 11th hour settlements with its hold-out constituents, notably the ad hoc convertible note holders, after a week-long trial that saw both sides arguing over which part of the capital structure should receive the FCC cash.