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Speedcast International Ltd Prepares for Final Restructuring Steps

Nov 30, 2020

Speedcast International Limited announced that, after conducting its plan sponsor selection process, Centerbridge Partners, L.P. has been designated as the Company's Plan Sponsor under its previously announced proposal. The Company has filed a Notice of Designation of Plan Sponsor documenting the outcome of the selection process.

Speedcast continues to progress towards a successful emergence from chapter 11 protection in the first quarter of 2021. The Company received conditional approval of its Disclosure Statement on 2 November 2020 and has been actively soliciting votes from eligible creditors in advance of the 8 December 2020 voting deadline. The solicitation process will continue to move forward as planned with the confirmation hearing scheduled for 17 December 2020.

Following the Court's confirmation of the Company's plan of reorganisation, Speedcast will be able to emerge as soon as the final regulatory approvals are secured, and closing conditions are met. At that time, the terms of the Plan would provide the reorganised Spe! edcast with a new $500 million equity investment from Centerbridge, a repayment of all the debtor in possession financing of $285 million, and a permanent reduction of all of the $634 million senior secured debt of the Company.

The Plan also provides for a cash payment to holders of secured claims. A number of the Company's trade vendors are crucial to its near and long-term future, and the Plan provides these vendors with a partial cash payment on account of their claims. Unsecured creditors generally will share in recoveries from a litigation trust.

"Following a thorough process and review of all options, we are confident that the Plan and equity commitment with Centerbridge maximises value for our stakeholders and represents the best offer," said Stephe Wilks, Chair of Speedcast International. "This Plan would enable Speedcast to emerge from chapter 11 in the most expeditious manner possible, with solid backing from a highly experienced private investment management firm to take the business to the next level."

Jared Hendricks, Senior Managing Director, Centerbridge, stated: "Based on our experience investing in and fostering the growth of satellite, telecommunications and information technology services platforms, we are confident Speedcast is uniquely positioned in the remote communications market with many levers for value creation and growth. We look forward to partnering with the management team and investing behind the Company's strategy."

The Plan has received the unanimous support of Speedcast's Board of Directors and has the support of the Official Committee of Unsecured Creditors, which has issued a letter recommending that all unsecured creditors vote to accept the Plan. As previously indicated, the Plan does not contemplate any recovery for existing shareholders, and existing shareholders would no longer have an equity interest in the reorganised Speedcast Group following its emergence from chapter 11.

The Company and its Board of Directo! rs are confident the Plan represents the best opportunity to position Speedcast for long-term success, while maximising value for its creditors and other stakeholders. Speedcast first announced its decision to recapitalise its business through voluntary Chapter 11 proceedings on 23 April 2020.

Speedcast is advised by Weil, Gotshal & Manges LLP as global legal counsel and Herbert Smith Freehills as co-counsel. Michael Healy of FTI Consulting, Inc. is Speedcast's Chief Restructuring Officer, and FTI Consulting, Inc. is Speedcast's financial and operational advisor. Moelis Australia Advisory Pty Ltd and Moelis & Company LLC are Speedcast's investment bankers. KCC is Speedcast's claims and noticing agent. Centerbridge is advised by Wachtell, Lipton, Rosen & Katz.