Intelsat Files Plan of
Reorganization with the Support of Key Creditor
Groups
February 12, 2021
Intelsat S.A. has
obtained the support of key creditor
constituencies on the terms of a comprehensive
financial restructuring that would reduce the
Company’s debt by more than half – from nearly
$15 billion to $7 billion – and position the
Company for long-term success.
The Company is filing a
proposed Plan of Reorganization in its Chapter
11 proceedings pending before the U.S.
Bankruptcy Court for the Eastern District of
Virginia, Richmond Division, accompanied by an
explanatory Disclosure Statement. The Plan,
which has been the subject of extensive
negotiations with the Company’s creditors and
resolves a multitude of complex issues among
them, has the support of holders of
approximately $3.8 billion of the Company’s
funded debt. These supporting creditors have
executed a Plan Support Agreement that binds
their support for the Company’s Plan. Intelsat
looks forward to continuing to engage with all
stakeholders to gain additional support for its
Plan across the capital structure.
The Company is requesting a
hearing on March 17, 2021 to seek Court approval
of the Disclosure Statement and establish
procedures to solicit votes on the Plan.
Intelsat announced on May
13, 2020 its decision to undertake a financial
restructuring process to position the Company
for long-term success and allow for the business
to emerge with a strengthened balance sheet to
complement its strong operating model already in
place. Today’s filings and the significant
consensus already achieved on the Plan pave the
way for the Company’s emergence from the Chapter
11 proceedings in the second half of 2021.