Speedcast emerges from bankruptcy with new ownership, no secured debt

By Sarah Lizee

Olympia, Wash., March 11 – Speedcast International Ltd. successfully completed its restructuring process and emerged from Chapter 11 proceedings under the ownership of Centerbridge Partners, LP on Thursday, according to a company news release.

Following Centerbridge’s $500 million equity investment in the company, Speedcast said it now has a clean balance sheet with no secured debt and a healthy cash balance, optimally positioning it as a stable, long-term partner for its employees, customers and vendors.

As previously reported, the company’s joint Chapter 11 plan of reorganization was confirmed on Jan. 22 by the U.S. Bankruptcy Court for the Southern District of Texas.

The plan provided that Centerbridge’s equity investment would be used in part to repay all of the company’s $285 million debtor-in-possession financing, as well as a permanent reduction of all of the $634 million senior secured debt of the company.

The plan also provided for at least a $150 million recovery for holders of allowed syndicated facility secured claims, a $25 million recovery to holders of unsecured trade claims and establishment of a litigation trust for the benefit of other unsecured claims.

Holders of other priority claims were to receive cash equal to the amount of their claims.

Holders of other secured claims were to receive cash equal to the amount of their claims, have their claims reinstated or receive other treatment sufficient to render their claims unimpaired.

All intercompany claims were to be adjusted, continued, settled, reinstated, discharged, eliminated or otherwise managed.

Holders of subordinated claims were not to receive or retain any property.

Parent interests were to be canceled with no distribution.

At the option of the reorganized debtors, in consultation with the plan sponsor, all allowed intercompany interests would either remain unaffected by the plan and continue in place or be canceled, and holders would not receive or retain any property.

Speedcast is advised by Weil, Gotshal & Manges LLP as global legal counsel and Herbert Smith Freehills as co-counsel. Michael Healy of FTI Consulting, Inc. is Speedcast’s chief restructuring officer, and FTI Consulting, Inc. is Speedcast’s financial and operational adviser. Moelis Australia Advisory Pty. Ltd. and Moelis & Co. LLC are Speedcast’s investment bankers. KCC is Speedcast’s claims and noticing agent. Centerbridge is advised by Wachtell, Lipton, Rosen & Katz.

Speedcast is a Sydney, Australia-based provider of remote communication and IT solutions. The company filed bankruptcy on April 23, 2020 under Chapter 11 case number 20-32243.

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