Reorg Webinar Series: Intelsat Plan State of Play:
Debtor’s Proposal and Competing Stakeholder Interests

 

Our Americas Core Credit by Reorg experts review Intelsat’s plan proposal and competing interests in the latest installment of our webinar series. On Feb. 12, the Intelsat debtors filed their first plan of reorganization and disclosure statement, which would set the value of the reorganized debtors at $10.7 billion, providing for full cash payouts of DIP and Jackson secured claims with 95% of reorganized equity to Jackson unsecured claims. Remaining equity and cash that sits at intermediate holding company entities would be divided among remaining noteholders on the basis of ranking determined by the debtors.

The plan is supported by various noteholder groups, which combined represent just $3.8 billion out of the $16.8 billion in prepetition debt. In particular, just 7.6% of Jackson unsecured noteholders support the plan. The members of the convertible noteholder group, which is seeking standing to fight for the $4.8 billion of Federal Communications Commission relocation payments, claiming the payments are property of Intelsat’s parent entity, are not party to the plan support agreement.

Our coverage team provided an overview of Intelsat’s proposed plan, discussing the various creditor groups and competing interests and reviewing the brewing legal fights including rights to the relocation payments, make whole and default interest claims and noteholder guarantee claims.
 

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