Satellite operator Intelsat SA on Wednesday announced that it has filed for Chapter 11 bankruptcy protection, making it the latest casualty of severe business disruptions caused by the COVID-19 pandemic.
The bankruptcy was filed in the US Bankruptcy Court for the Eastern District of Virginia, Richmond Division. Intelsat General (IGC), which serves the company’s US commercial, government, and allied military customers, is not part of the Chapter 11 proceedings.
The company listed assets and liabilities in the range of $10 bn to $50bn, according to filings.
Further, Intelsat said it had obtained $1bn in debtor-in-possession financing. The cash flow intends to provide ample liquidity during the restructuring process to support ongoing operations, fund the substantial upfront C-band clearing costs, and allow the company to continue investing in the innovations and services that customers need today and in the future.
The company’s Chapter 11 filing comes more than a month after it announced that it would delay filing its first-quarter results.
Intelsat is one of the many companies that will participate in the clearing of the C-band spectrum under the Federal Communications Commission (FCC) order to support a build-out of 5G wireless infrastructure in the United States.
“To meet the FCC’s accelerated clearing deadlines and ultimately be eligible to receive $4.87bn of accelerated relocation payments, Intelsat needs to spend more than $1bn on clearing activities,” the Luxembourg-based company said in a statement.
However, Intelsat’s day-to-day operations, engagement with customers and partners, and capital investments will continue as usual. No changes to the Company’s operations or workforce are planned.