INTELSAT SA SATELLITE BROADCASTER FILED FOR BANKRUPTCY

Despite the perception of bankruptcy as a procedure of the collapse of a company, this is often not the case. In some cases, bankruptcy becomes a legal way to solve problems with debts and a tool to restore the solvency of the debtor.

For example, the US satellite operator Intelsat SA, which is the largest satellite broadcaster in the world, already intends to resort to the restructuring procedure. According to the representatives of the company, the reason is to reduce the debt burden and increase the company's liquidity. This will allow to “come out of the crisis with a strengthened balance in addition to a strong operating model and plans for the future growth.”

The reason for such a measure was the consequences of the spread of coronavirus infection. In particular, the pandemic affected several Intelsat SA markets.

According to the preliminary estimates, the procedure will allow the company to cope with the debt burden of $ 14 billion. Intelsat SA has already announced the obtaining of $ 1 billion, which will provide it with sufficient liquidity during the procedure and ongoing operations.

Bankruptcy claim was filed by the parent company, as well as the several of its subsidiaries. The cases will be considered by the US court of Virginia.