Intelsat equity holders’ motion seeking examiner denied by court

By Sarah Lizee

Olympia, Wash., Sept. 30 – An informal group of Intelsat SA equity holders’ motion seeking appointment of an examiner was denied by the U.S. Bankruptcy Court for the Eastern District of Virginia, according to a minute entry filed Wednesday.

As previously reported, the official committee of unsecured creditors had objected to the motion.

“Multiple fiduciaries have spent significant time investigating any and all potential sources of value at [Intelsat], and the plan proposes a settlement of these issues,” the creditors committee said.

“The ad hoc equity group offers no explanation as to why another review of these issues, particularly one paid for with estate funds, is necessary this close to confirmation, other than that such investigations and the proposed settlement have not resulted in distributable value for [Intelsat] equity.”

The creditors committee also said that the equity holder group hasn’t provided any reason as to why they can’t investigate the issues themselves.

“The committee understands that the ad hoc equity group has been provided full access to discovery, but has declined to undertake its own investigation, choosing, instead, to seek appointment of an examiner,” the committee said.

The unsecured creditors said that appointing an examiner at this point would add additional unnecessary administrative expenses without any corresponding benefit.

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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