Satellite operator Intelsat SA continues to expand despite filing for bankruptcy earlier this year to address billions of dollars in debt, agreeing to purchase the in-flight broadband business of Gogo Inc. for $400 million, WSJ Pro Bankruptcy reported. The acquisition announced on Monday is being funded in part by the $1 billion bankruptcy loan Intelsat is using during its chapter 11 proceedings, the companies said. Intelsat said it has support from lenders funding its chapter 11, a group of investors that includes Apollo Global Management LLC, Fidelity Management & Research and BlackRock Inc. Intelsat, based in McLean, Va., is a major satellite operator and one of the largest providers of broadband service to airline and cruise-ship customers. Although consumer travel has declined significantly this year because of the coronavirus pandemic, Intelsat Chief Executive Stephen Spengler said consumer demand for in-flight connectivity is expected to continue to grow over the next decade. Gogo is available on more than 3,200 aircraft, Intelsat said in court papers.
