Satmex obtains court approval of disclosure statement

By Jennifer Lanning Drey

Eugene, Ore., Sept. 13 - Satelites Mexicanos SA de CV (Satmex) obtained court approval of the disclosure statement for its prepackaged plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Satmex said in the disclosure statement that its mercantil concurso restructuring plan was approved by the Mexican court on July 14 and the concurso proceeding became final on July 31.

Under the plan:

• Holders of senior secured note claims will receive first-priority senior secured notes, and holders of bond claims will receive second-priority senior secured notes and interests in one or more special purpose entity that will own beneficial interests in the equity trust corresponding to the company's new series B and series N common stock, collectively representing 43% of the voting rights and 78% of the financial rights in the reorganized company;

• Holders of existing preferred stock interests will receive one share of new series B common stock and ownership of beneficial interests in the equity trust, collectively representing 2% of the voting rights and 2% of the financial rights in the reorganized company;

• Holders of existing common stock interests will receive ownership of beneficial interests in the equity trust corresponding to new series A and series N common stock, collectively representing 20% of the financial rights and 55% if the voting rights in the reorganized company; and

• Holders of general unsecured claims will be treated according to the terms of the particular agreement that governs the claim.

New note terms

The company will issue $234.4 million in five-year first-priority senior secured notes.

If the effective date is anything other than Sept. 30, the principal amount of notes will be adjusted upward for each day after that or downward for each day before that.

Interest will be one-month or three-month Libor plus 875 basis points.

The company will also issue $140 million of seven-year second-priority senior secured notes.

Interest will be 10.125%, to be paid in kind at 10.125% for year one and 8.125% for years two through five, and will be paid in cash at 10.125% for years six and seven.

The plan confirmation hearing has been scheduled for Oct. 26.

Satmex is a Mexico-based satellite operator. Its Chapter 11 case number is 06-11868.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.