McLean satellite operator eyes Chapter 11 emergence
Intelsat Corp. creditors approve restructuring
McLean-based satellite operator Intelsat Corp. announced Friday it has the support of creditors to financially restructure under Chapter 11 bankruptcy, which would decrease the company’s debt from nearly $15 billion to $7 billion.
“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,” according to Intelsat’s Friday statement.
The company first announced its intent to file for Chapter 11 bankruptcy in May 2020. The plan is pending before the U.S. Bankruptcy Court for the Eastern District of Virginia.
Part of the reason for the bankruptcy filing was to spend money on a program that would allow it to build 5G infrastructure under the Federal Communications Commission order in support of a build-out of 5G wireless infrastructure in the U.S., known as the 5G Fast Plan, according to a company statement. Intelsat has to clear its C-band spectrum in order to support 5G, which offers faster data rates and fewer delays in transmitting data.
Intelsat was founded in 1964 and provides video and broadband services.