US court approves Speedcast's reorganization plan

The U.S. Bankruptcy Court for the Southern District of Texas confirmed the reorganization plan for Speedcast International Ltd. and some of its affiliates, according to a Jan. 22 statement.

The court's confirmation clears the way for Speedcast to complete its Chapter 11 bankruptcy process by the end of the first quarter, subject to final regulatory approvals and other customary closing conditions.

The approval came after Speedcast reached a settlement with its battling senior lenders, Centerbridge Partners LP and Black Diamond Capital Management LLC. The settlement provides, among other things, that Centerbridge will purchase the term loan and revolver claims that Black Diamond holds against Speedcast.

Under the reorganization plan, Centerbridge will provide a new $500 million equity investment to Speedcast, which the latter will use to repay all of its debtor-in-possession financing worth $285 million. The Australian satellite communications company will also get a permanent reduction of all of its $634 million senior secured debt.

Joe Spytek will become Speedcast's CEO upon the company's emergence from Chapter 11.

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 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.