Intelsat creditor group objects to first-lien note claims settlement

By Sarah Lizee

Olympia, Wash., Oct. 18 – Intelsat SA’s official committee of unsecured creditors objected to the company’s motion seeking approval of a settlement of first-lien note claims, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The committee said that under the settlement, the debtors would gift over $115 million in value to the holders of the first-lien notes to resolve some asserted claims, representing 77% of the full asserted value of those claims, supposedly to “build consensus” around the debtors’ plan.

The group said the debtor should not be required to pay a multimillion-dollar premium to the holders of the first-lien notes for the sole reason that they sought bankruptcy protection.

The committee also said that the noteholders have not suffered any actual loss on account of the bankruptcy filing.

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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