Intelsat SA, the satellite operator that has been in bankruptcy for more than 18 months, secured court approval for its restructuring plan after a trial and last-minute settlement that centered on who will get nearly $5 billion in future payments from the Federal Communications Commission, Bloomberg News reported. The plan, which originally faced numerous objections but now has broad creditor support, will cut its debt load from about $16 billion and outlines about $7.9 billion in new borrowings for Intelsat to exit bankruptcy. The company negotiated 11th hour settlements with its hold-out constituents, notably the ad hoc convertible note holders, after a week-long trial that saw both sides arguing over which part of the capital structure should receive the FCC cash. The satellite firm filed for bankruptcy in May 2020 to trim its debt as part of a broader turnaround that hinges on transferring its so-called C-Band spectrum for use by the FCC. The commission has promised Intelsat that it will receive about $4.9 billion in exchange for hitting certain milestones to transfer the airwaves that can be used by mobile phone companies to provide 5G services.
