Intelsat SA has filed for personal bankruptcy defense and attained a dedication of $1 billion in debtor-in-possession funding to assist it take part in an future federal airwave auction in December.
The satellite operator, which is saddled with a financial debt of $14.five billion, is turning to economic restructuring through Chapter 11 personal bankruptcy. It aims to just take advantage of a prepared Federal Communications Commission auction of spectrum, presently in use by satellite operators. The FCC wants to repurpose this spectrum for 5G networks.
Intelsat said that to meet up with FCC clearing deadlines and be suitable to receive $four.87 billion of accelerated relocation payments, it requires to expend more than $1 billion transferring existing shoppers from airwaves, which will have to begin quickly.
In accordance to the WSJ, Intelsat is having difficulties owing to intensive level of competition from rivals and slowdown in the airline and cruise ship