The judge overseeing satellite operator Intelsat SA’s bankruptcy has rejected a request by a group of equityholders to bring in an independent examiner to investigate claims of potential mismanagement and other ways to bring in more money for creditors that they say the company has ignored, Reuters reported. U.S. Bankruptcy Judge Keith Phillips in Richmond, Va., issued his ruling yesterday during a virtual hearing, about 40 days before he is set to consider Intelsat’s proposed reorganization plan for approval. The judge said that he did not believe there was sufficient time before the confirmation hearing for an examiner to conduct a meaningful investigation. Under the plan, Intelsat, represented by Kirkland & Ellis, would cut its debt from $15 billion to $7 billion and hand control of the company over to unsecured bondholders of subsidiary Intelsat Jackson Holdings SA. The plan is opposed by another group of bondholders. The equity group, which represents about 2% of Intelsat SA’s shareholders, had argued that the plan is improperly designed solely for the benefit of the Intelsat affiliates’ creditors, rather than creditors and shareholders of the parent entity. The group said that an examiner should be brought in to investigate tax benefits and potential mismanagement claims against executives, among other areas of potential value, that could boost recoveries to creditors of Intelsat SA. The company, however, said that it was too late in the game to bring in an examiner. Judge Phillips agreed, saying he didn’t think an examiner would have enough time to get up to speed before the Nov. 8 plan confirmation hearing.
