Intelsat reorganization plan nets confirmation; exit seen in early 2022

The bankruptcy court overseeing the Chapter 11 proceedings of Intelsat SA confirmed the company's reorganization plan, the company announced Dec. 16.

The company said it would emerge from Chapter 11 early next year as a private company, pending regulatory approvals and "completion of certain corporate actions."

In connection with confirmation of the plan, court filings show that Intelsat settled the final outstanding major objection to its proposed reorganization plan, filed by an ad hoc committee of convertible noteholders, by increasing the cash recovery to unsecured creditors at parent company Intelsat SA, which includes convertible noteholders with claims of roughly $409 million, by $25 million.

During the confirmation hearing, the company had previously settled outstanding objections to its plan that had been filed by SES Americom and an ad hoc equity committee as well settling a dispute concerning the amount of make-whole premium payments due on its first-lien secured debt.