• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • NEWS:
  • SatNews
  • SatMagazine
  • MilSatMagazine
  • SmallSat News
  • |     EVENTS:
  • SmallSat Symposium
  • Satellite Innovation
  • MilSat Symposium

SatNews

  • HOME
  • Magazines
  • Events
  • SmallSat Europe Insights
  • Industry Calendar
    • IN PERSON
    • VIRTUAL
  • Subscribe

Speedcast Secures Equity Commitment From Centerbridge Partners

August 13, 2020

Speedcast International Limited (ASX: SDA) has received a US$395 million equity commitment from Centerbridge Partners, L.P. and its affiliates, one of the company’s largest lenders.

This commitment would support a plan of reorganization, which has the support of both Centerbridge and the Company’s Official Committee of Unsecured Creditors. Centerbridge’s proposed US$395 million equity investment provides the opportunity for Speedcast’s existing secured lenders to participate in the equity commitment on a fully pro-rata basis to support Speedcast’s emergence from its reorganization under Chapter 11 of the US Bankruptcy Code.

During the completion of the Chapter 11 process and under the new ownership structure, Speedcast remains focused on supporting the connectivity needs of its customers and fully intends to continue its global operations uninterrupted. The proposed plan would enable the Company, under the leadership of both Peter Shaper, Speedcast’s Chief Executive Officer, and Joe Spytek, Speedcast’s President and Chief Commercial Officer, to continue to execute on the transformation plan to refocus the business, which they initiated earlier this year after joining the organization in executive leadership roles.

Both Shaper and Spytek have extensive background in the communications and service provider sectors, each previously serving as chief executives for leading remote communications businesses. Centerbridge has also committed to providing, if needed, debtor-in-possession (DIP) financing of up to US$220 million on favorable economic terms.

The Centerbridge DIP financing, if drawn, would be used to refinance the Company’s existing DIP financing, to fund the Company’s Chapter 11 plan process, and to ensure the Company can continue to meet its financial commitments while it works toward confirmation of the plan of reorganization. The plan will provide for cash payments to holders of secured claims.

A number of the company’s trade creditors are critical to its future and the plan will provide to those relevant trade creditors, a partial cash payment for those unsecured claims. Unsecured creditors generally will share in recoveries from a litigation trust, noting there is no certainty that any action would be undertaken or payment made from this trust.

The plan does not contemplate any recovery for existing shareholders, and existing shareholders would no longer have an equity interest in the reorganized Speedcast Group. Completion of the equity investment is subject to confirmation of the plan of reorganization and a number of other conditions, including various regulatory approvals and waivers.

Speedcast announced its decision to recapitalize its business through voluntary Chapter 11 proceedings on April 23, 2020.

Filed Under: Comms, Funding

Primary Sidebar

Most Read Stories

  • Space Debris, and the EU’s Space Act
  • In celebration of Juneteenth
  • Wishing Everyone a Happy July 4th … Independence Day, U.S.A.
  • Eutelsat's efforts to obtain funding to save OneWeb
  • Forrester's Digest: Starlink active in Iran

About Satnews

  • Contacts
  • History

Archives

  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020

Secondary Sidebar

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy policy
x
Sign up Now (For Free)
Access daily or weekly satellite news updates covering all aspects of the commercial and military satellite industry.
Invalid email address
Notify Me Regarding ( At least one ):
We value your privacy and will not sell or share your email or other information with any other company. You may also unsubscribe at anytime.

Click Here to see our full privacy policy.
Thanks for subscribing!