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Published on 9/5/2023 in the Prospect News Distressed Debt Daily.

Intelsat moves to reopen Chapter 11 case, with SES claims now allowed

By Sarah Lizee

Olympia, Wash., Sept. 5 – Intelsat SA has filed a motion seeking reopening of its Chapter 11 bankruptcy case now that a U.S. district court has reversed and remanded the U.S. Bankruptcy Court for the Eastern District of Virginia’s decision disallowing SES Americom, Inc.’s claims.

As background, in July 2020, SES filed claims against the now-reorganized debtors relating to a consortium agreement dated Sept. 27, 2018.

SES waived and released the claims, except for three against Intelsat US LLC, Intelsat License LLC and Intelsat Jackson Holdings, SA, and the court held a seven-day bench trial on the remaining claims.

On Sept. 30, 2022, the court issued a memorandum opinion and order disallowing the claims.

After that, the reorganized debtors filed a motion to close the Chapter 11 cases, which were three or the four remaining cases pending before the court.

A stipulation was granted on Feb. 1, 2023, under which the parties agreed that they would jointly move to reopen the closed cases to the extent further proceedings are needed following resolution of an appeal.

On June 22, the U.S. District Court for the Eastern District of Virginia issued a memorandum opinion and an order on the appeal, reversing the bankruptcy court’s decision.

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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