Intelsat shareholders ask court to appoint official equity committee

By Sarah Lizee

Olympia, Wash., March 8 – An informal group of Intelsat SA shareholders asked the U.S. Bankruptcy Court for the Eastern District of Virginia to appoint an official committee of equity holders, according to a motion filed Saturday.

“The appointment of an equity committee in these consolidated bankruptcy cases is vital to protect the interests of all equity holders because their interests have not been recognized, let alone protected, by any fiduciary or representative,” the informal group said in its motion.

“Such appointment is also mandated to further administrative efficiency because, without an equity committee, disparate equity holders ... would inevitably seek to intervene in and/or object to litigation, negotiation, mediation and plan confirmation, resulting in greater delay, confusion and costs than would result with an officially appointed committee in place and engaged.”

The group said that while the debtors initially opposed the appointment of an official equity committee, they now agree that they need to “conserve judicial resources” by providing for the disputes to be addressed on a timeline that will provide all stakeholders with a fair opportunity to advocate for their rights.

Intelsat is a Luxembourg-based satellite telecommunications company. The company filed bankruptcy on May 14, 2020 under Chapter 11 case number 20-32299.

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