Intelsat drops amid bankruptcy talk; PG&E lower as court approves restructuring plan

By James McCandless

San Antonio, Feb. 5 – Despite overall improvements in the distressed debt market, volume leaders in the telecom and utilities sectors were depressed.

Intelsat SA’s notes dropped amid reports that the company may file for Chapter 11 bankruptcy as a result of decreased revenue from a C-band spectrum auction.

Intelsat (Luxembourg) SA’s 8 1/8% senior notes due 2023 dived 8¼ points to close at 40½ bid. Intelsat Jackson Holdings SA’s 5½% senior notes due 2023 lost 3 points to close at 82 bid.

Late in the day on Wednesday, reports indicated that the Luxembourg-based satellite operator is considering filing for Chapter 11 bankruptcy if U.S. regulators don’t raise the level of compensation operators would receive from a C-band spectrum auction.

“I would say that’s very likely,” a trader said. “If they can’t get that revenue, they will file very soon.”

Meanwhile, utilities name PG&E Corp.’s notes saw negativity as the company received court approval for its amended restructuring plan.

The 6.05% notes due 2034 shed 3¼ points to close at 113 bid.

During the Wednesday session, the San Francisco-based bankrupt electric utility received approval to enter into a restructuring support agreement with an informal committee of senior unsecured noteholders and shareholders, Prospect News reported.

© 2015 Prospect News.
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