Satellite telecommunications service provider Speedcast International has announced that it has received further recapitalisation proposals for the business from two of its largest lenders, Black Diamond Capital Management and Centerbridge Partners. The company is currently evaluating the revised proposals with a view to maximising value for all creditors and certainty of outcome for all stakeholders.
Speedcast has also withdrawn a related motion that was due to be heard in the US Bankruptcy Court for the Southern District of Texas.
The Chair of Speedcast International, Stephe Wilks said: “Black Diamond and Centerbridge are the two largest secured creditors of the company and we are pleased that both have delivered compelling proposals for Speedcast. Our focus remains on evaluating both proposals to determine an agreed path that maximises value for all creditors and certainty for all stakeholders.”
Peter Shaper, Speedcast’s CEO, is returning to the private equity firm he is affiliated with. Shaper has tendered his resignation to the Board, and the Board has accepted his resignation. Joe Spytek will continue in his role as President and Chief Commercial Officer, continuing to provide senior leadership to the Company.
Stephe Wilks added: “The Board is incredibly appreciative of Peter’s efforts in stabilising Speedcast through this challenging period.”
Speedcast announced its decision to recapitalise its business through voluntary Chapter 11 proceedings on April 23, 2020.
Speedcast is advised by Weil, Gotshal & Manges LLP as global legal counsel and Herbert Smith Freehills as co-counsel. Michael Healy of FTI Consulting is Speedcast’s Chief Restructuring Officer, and FTI Consulting is Speedcast’s financial and operational advisor.
Moelis Australia Advisory and Moelis & Company are Speedcast’s investment bankers. KCC is Speedcast’s claims and noticing agent.