Speedcast Announces Confirmation
of Plan of Reorganization
Expects to Emerge from Chapter 11
in the First Quarter of 2021
January 25, 2021
Speedcast International Limited
announced that the U.S. Bankruptcy Court for the
Southern District of Texas has confirmed Speedcast
International Limited and certain of its affiliates’
Plan of Reorganization (the “Plan”). The confirmation
definitively clears the path for the Company to
successfully complete the Chapter 11 process after
receiving final regulatory approvals and satisfying
customary closing conditions, which is expected by the
end of the first quarter of 2021. The Company is poised
to emerge with a significantly strengthened balance
sheet and the support of Centerbridge Partners, L.P. and
its affiliates as its new owner.
“The Court’s confirmation of the
Plan marks a key milestone in the Company’s efforts to
become a stronger business and positions us to emerge in
the near term, having achieved our goals,” said Stephe
Wilks, Chair of Speedcast. “Throughout the restructuring
process, the Company’s global workforce has delivered on
its commitments while adapting to change. On behalf of
the Board, we are immensely grateful for the ongoing
patience and trust that the Company’s employees,
customers and partners have shown in this process.”
Joe Spytek will take on the role of
Speedcast’s Chief Executive Officer, leading the company
upon emergence under the new Centerbridge ownership.
Spytek has served as Speedcast’s President and Chief
Commercial Officer for the last year after being tapped
to join the organization to help implement its
turnaround.
“With a bolstered financial
foundation and with the support of Centerbridge, one of
the world’s leading investment funds, Speedcast is
well-positioned to maximize its full potential as the
Company works to build a platform that addresses
customers’ most demanding operations and application
requirements now, and in the future,” said Spytek.
“Looking ahead, this agility and commitment to
innovation will continue as Speedcast keeps raising the
bar for itself and the industry as a whole.”
“Speedcast’s best-in-class
technology and connectivity solutions provide a leading
value proposition to the Company’s customers, enhancing
productivity, communication and safety,” said Jared
Hendricks, Senior Managing Director, Centerbridge. “We
continue to be excited about investing behind Joe and
the Speedcast team’s innovation and support of its
customers and partners in the next phase of growth for
the Company.”
Under the terms of the Plan,
Speedcast is set to emerge with a new USD $500 million
equity investment from Centerbridge, which will be used
in part to repay all of its USD $285 million
debtor-in-possession financing, as well as a permanent
reduction of all of the USD $634 million senior secured
debt of the Company.
As previously indicated, the Plan
also provides for, among other things, a cash payment to
holders of secured claims and cash payment to certain of
Speedcast’s critical trade vendors. Unsecured creditors
will share in recoveries from a litigation trust. The
Plan does not contemplate any recovery for existing
shareholders, who will no longer have an equity interest
in the reorganized Company following its emergence.
Speedcast first announced its
decision to recapitalize its business through voluntary
Chapter 11 proceedings on April 23, 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.

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