Intelsat S.A. Files Bankruptcy in Richmond, Virginia
Late last night, Intelsat S.A. and its affiliates filed for Chapter 11 bankruptcy protection in the Richmond Division of the United States Bankruptcy Court for the Eastern District of Virginia (Case No. 20-32299-KLP). Attorneys from our Bankruptcy Team have reviewed the "first day" filings that will be heard telephonically tomorrow by the Honorable Keith L. Phillips.
Intelsat is one of the world’s largest satellite operators. Intelsat provides media services to BBC, 21st Century Fox, TimeWarner, and the Walt Disney Company, in addition to servicing telecommunications operators, Internet service providers, and the U.S. government and military. The company also provides broadband services for passengers of airlines and cruise ships. Intelsat is seeking bankruptcy relief in part due to the COVID-19 pandemic and a decrease in revenues from the broadband service businesses
Intelsat is looking to restructure its business in order to position itself to support a build-out of 5G wireless infrastructure in the United States. Prior to filing bankruptcy, the debtors negotiated a $1 billion DIP commitment to provide the necessary capital to undertake new projects and service new and existing customers.
The debtors have requested Court approval for the payment of pre-petition claims to certain trade creditors due to the complexity of their business and the urgent need to continue providing these services to its customers in the ordinary course. Currently, the debtors provide communications services to over 800 worldwide customers and have requested Court approval to continue performing under certain customer contracts, remitting deposits, and honoring price adjustments and warranties. In addition, the debtors have requested authorization to satisfy any outstanding obligations on certain customer contracts on a postpetition basis.
If you have questions or needs regarding these bankruptcy proceedings, please contact a member of our Bankruptcy Team:
Ashley Burgess
Thomas Ebel
Eric Howlett
Klementina Pavlova