Intelsat became the latest satellite service provider to file for Chapter 11 bankruptcy protection in the US, a move made as part of a broader financial restructure to see it through troubled waters around the release of C-band spectrum to the government.
In a statement, Intelsat said the process will likely result in a “substantial reduction” of its legacy debt burden, while delivering an estimated $1 billion in funding needed to adhere to a Federal Communications Commission (FCC) order to free-up a total of 280MHz of spectrum [1] in the 3.7GHz to 4.2GHz bands for 5G services.
Intelsat said it had already secured a commitment around this financing as part of its restructure: it stands to to receive $4.87 billion in relocation payments from the FCC relating to the spectrum move.
Stephen Spengler, Intelsat CEO, said: “At the end of this process, we will be on stronger financial footing for the future, further enhancing our industry-leading portfolio of space-based communications services and paving the way for our continued innovation and investments to benefit our customers”.
Rival OneWeb sought Chapter 11 protection [2] in late March, a move GSMA Intelligence noted raised questions around the LEO sector [3].
[1] https://www.mobileworldlive.com/featured-content/top-three/fcc-moves-toward-c-band-auction/
[2] https://www.mobileworldlive.com/featured-content/home-banner/oneweb-seeks-safe-harbour-as-covid-19-halts-finance/
[3] https://www.mobileworldlive.com/blog/intelligence-brief-how-will-oneweb-collapse-impact-the-future-of-leo-satellites/
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