Intelsat Gets Court OK to Exit Bankruptcy; Early Next Year Targeted
Intelsat said it plans to emerge from Chapter 11 bankruptcy in early 2022, following U.S. Bankruptcy Judge Keith Phillips of Richmond OK'ing its emergence plan Thursday. The hearing, set to start at 10 a.m., was postponed three hours as Intelsat and creditors hammered out remaining issues. That unanimity, given the competing claims, is "a remarkable achievement," Phillips said.
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The plan more than halves Intelsat debt -- from $16 billion to $7 billion -- and has it emerge from bankruptcy as a privately held company, Intelsat said. It said it will be able to cut its debt further when it receives its $4.9 billion in C-band accelerated relocation payments. The $1.2 billion approved by the FCC for its Phase I clearing should come in January, the company said.