Intelsat files for bankruptcy

Intelsat, one of the oldest commercial satellite companies in the world, has filed for bankruptcy under Chapter 11 of the US Bankruptcy Code.

In a statement issued this week, Intelsat said that it is using the Chapter 11 proceedings to restructure the company’s finances and enhance its liquidity.

“[This] will likely result in a substantial reduction of Intelsat’s legacy debt burden, allowing for Intelsat to emerge with a strengthened balance sheet to complement its strong operating model and future growth plans,” the company stated.

“One of the primary catalysts for restructuring the balance sheet now is Intelsat’s desire to participate in the accelerated clearing of C-band spectrum under the Federal Communications Commission order in support of a build-out of 5G wireless infrastructure in the United States,” Intelsat said.

“To meet the FCC’s accelerated clearing deadlines and ultimately be eligible to receive $4.87 billion of accelerated relocation payments, Intelsat needs to spend more than $1 billion on clearing activities.”

Intelsat said that these clearing activities must start immediately, long before costs begin to be reimbursed.

“The Company is also managing the economic slowdown impacting several of its end markets caused by the COVID-19 global health crisis.”

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Intelsat files for bankruptcy