Satellite operator Intelsat SA may delay its reorganization plan confirmation hearing by about a month, which could push back the date it eventually exits from bankruptcy, Reuters reported. Bankruptcy Judge Keith Phillips in Richmond, Va., said during a virtual hearing on Wednesday that he has "serious concerns about whether this can be accomplished in four days,” alluding to the extensive evidence and testimony the company expects to go through as it battles opponents during the plan hearing. Lawyers for the company and its various creditor groups said they would discuss the judge's suggested postponement of the hearing from the current Nov. 8 start date to Dec. 2. Approval of the plan is key to Intelsat’s ability to wrap up its bankruptcy, which has been ongoing since May 2020. Intelsat is pursuing a plan that 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 has substantial support among creditors, but some opposition remains from another group of bondholders, a small group of equityholders and rival satellite company SES Americom. Intelsat filed for bankruptcy to restructure its debt as it prepared to transfer some of its C-band spectrum to the U.S. Federal Communications Commission. In exchange, Intelsat is receiving about $4.9 billion from the FCC. The current agreement with bondholders requires an order approving the plan to be entered by Dec. 22. The case is In re Intelsat SA, U.S. Bankruptcy Court, Eastern District of Virginia, No. 20-32299.
