Satmex: Bankruptcy court confirms pre-packaged Chapter 11 plan

By Lisa Kerner

Charlotte, N.C., May 11 - Satelites Mexicanos, SA de CV (Satmex) had its reorganization plan confirmed by the U.S. Bankruptcy Court for the District of Delaware on May 11, according to an attorney familiar with the case.

As previously reported, Satmex and its subsidiaries Alterna'TV Corp. and Alterna'TV International Corp. made pre-packaged Chapter 11 bankruptcy filings to implement a planned comprehensive balance sheet restructuring.

Plan terms under the pre-packaged plan of reorganization include the following:

• The recapitalization will be financed with the proceeds of an offering of up to $325 million principal amount of new senior secured debt financing and the proceeds of a $96.25 million rights offering of equity securities in the indirect parent of reorganized Satmex to eligible holders of second-priority senior secured notes;

• The noteholders will also have the right to invest in their share of an up to $40 million follow-on issuance of equity securities, which may be called by the reorganized company to fund the construction and launch of Satmex 7;

• Holders of Satmex's first-priority senior secured notes due 2011 will be paid out in cash at par plus accrued interest;

• In lieu of equity interests in the indirect parent, primary rights to invest in additional parent interests and the follow-on rights, second-priority noteholders can elect to receive a cash payment of $0.38 for every dollar of notes, which will be funded by supporting noteholders;

• Other creditors, including trade creditors, are expected to be paid in full; and

• Existing Satmex stockholders would receive their share of $6.25 million under a Holdsat Mexico purchase agreement if specified conditions are met.

Satmex is a Juarez, Mexico-based satellite coverage provider. The case number is 11-11035.

© 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.