Global satellite operator Intelsat filed for bankruptcy protection on Thursday, citing disruption from to its business from the virus pandemic, in a move aimed at restructuring its operations.
The filing in the United States (US) bankruptcy court in Virginia listed more than $16 billion in debt.
The company said in a statement it was “managing the economic slowdown impacting several of its end markets caused by the COVID-19 global health crisis.”
Intelsat said bankruptcy protection would help it restructure its balance sheet as it reorganizes operations, and that business would continue during this process.
The company is scheduled to receive $4.87 billion for exiting the C-band required by the US Federal Communications Commission for 5G, or fifth generation wireless networks in the United States.
But it needs to spend more than $1 billion on “clearing activities” before receiving any payments.
“This is a transformational moment in the history of our company,”…
Source: Vanguard Newspaper