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Speedcast gets $395 million equity commitment, announces plan terms
By Caroline Salls
Pittsburgh, Aug. 14 – Speedcast International Ltd. has obtained a $395 million equity commitment from Centerbridge Partners, LP, which the company said is one of its largest lenders, according to an expense reimbursement motion filed with the U.S. Bankruptcy Court for the Southern District of Texas.
In addition, Speedcast said it has secured the support of its official committee of unsecured creditors “to pursue a path toward a value-maximizing plan of reorganization and a rapid exit from Chapter 11.”
According to the motion, the equity commitment agreement gives all of the company’s secured credit agreement lender the opportunity to participate in the ownership of reorganized Speedcast based on their ownership of the company’s pre-bankruptcy debt held as of Aug. 11.
The Chapter 11 plan term sheet also calls for repayment of Speedcast’s debtor-in-possession facility in full in cash, a $39.5 million recovery to pre-bankruptcy lenders “and a meaningful recovery to trade creditors, who are critical to the company’s operations,” the motion said.
Specifically, the company said trade creditors would benefit from the distribution of $25 million in cash and interests to a litigation trust. Trust interests would also be distributed to other unsecured creditors, including holders of the pre-bankruptcy lenders’ unsecured deficiency claims.
Holders of existing Speedcast International interests will receive no distribution.
Speedcast is an Australia-based provider of remote communication and IT solutions. The company filed bankruptcy on April 23 under Chapter 11 case number 20-32243.
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