Intelsat statement hearing adjourned again, this time to Aug. 18

By Sarah Lizee

Olympia, Wash., July 26 – Intelsat SA’s hearing on the disclosure statement for its Chapter 11 plan of reorganization has been adjourned again, now to Aug. 18 from Aug. 11, according to a notice filed Saturday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The hearing has been rescheduled several times. It was originally set for May 11.

As previously reported, the company said it filed its plan after obtaining the support of its key creditors on the terms of a comprehensive financial restructuring that would reduce the company’s debt to $7 billion from nearly $15 billion.

Intelsat said the plan has the support of holders of roughly $3.8 billion of the company’s funded debt.

The restructuring would include a new $750 million revolving credit facility and a new term loan and new secured notes.

Under the plan support agreement, holders of the 8% and 9˝% first-lien notes claims and term loan facility claims will receive their pro rata share of a cash payment under a secured creditor settlement.

The 8% and 9˝% first-lien notes claims will be allowed in an amount equal to the full outstanding principal amount, any accrued interest through the effective date at the contractual rate and 77% of a prepayment premium and/or make-whole amounts payable under the notes.

Term loan facility claims will be allowed in an amount equal to the full outstanding principal amount, any accrued interest through the effective date at the non-default contractual rate applicable to ABR loans in the case of tranche B-3 term loans and tranche B-4 term loans, and applicable to fixed-rate loans in the case of tranche B-5 term loans, and 90% of the accrued default interest through the effective date on the ABR loans and fixed-rate loans.

Holders of debtor-in-possession facility claims, administrative claims and priority tax claims will be paid in full.

Holders of other secured claims will receive payment in full in cash or the collateral securing their claims, or have their claims reinstated.

Holders of other priority claims will receive payment in full in cash or other treatment leaving them unimpaired.

Holders of intercompany claims will have their claims reinstated, distributed, contributed, set off, settled, canceled and released, or otherwise addressed at the option of the debtors.

Intercompany interests will be reinstated or canceled with no distribution.

Holders of unsecured claims against Jackson and its subsidiaries will receive their pro rata share of 95% of new common stock, subject to dilution, and $500 million of the cash proceeds of the new term loan or notes.

Holders of unsecured claims against ICF will receive their pro rata share of the distribution of all remaining cash at ICF after payment of restructuring expenses and professional fees, 3.043% of new common stock, 69.944% of series A warrants, 69.944% of series B warrants and 100% of contingent value rights related to the company’s efforts to clear the C-band.

Holders of unsecured claims against Envision will receive their pro rata share of the distribution of all remaining cash at Envision after payment of restructuring expenses and professional fees, with 70% of the cash going to holders of senior notes claims and 30% going to holders of convertible claims; 18.264% of series A warrants; and 18.264% of series B warrants.

Holders of unsecured claims against LuxCo will receive their pro rata share of the distribution of all remaining cash at LuxCo after payment of restructuring expenses and professional fees, 1.957% of new common stock, 11.792% of series A warrants and 11.792% of series B warrants.

Holders of unsecured claims against Intelsat Investments SA, Intelsat Holdings SA, Intelsat SA and Investment Holdings Sarl and holders of GUC claims will receive their pro rata share of any remaining cash at the applicable company.

Intelsat interests will be retained, subject to dilution by the issuance of new common stock, and holders will receive no distribution.

The plan support agreement contains certain milestones, including obtaining approval of the disclosure statement in no more than 75 days, a confirmation hearing taking place in no more than 125 days and obtaining confirmation in no more than 150 days.

Intelsat is a Luxembourg-based satellite telecommunications company. The company filed bankruptcy on May 14, 2020 under Chapter 11 case number 20-32299.

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