• 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

SatNews

  • HOME
  • Magazines
  • Events
  • Perspectives
  • Industry Calendar
    • IN PERSON
    • VIRTUAL
  • Subscribe

Speedcast Receives Equity Commitment To Complete Recapitalization

August 19, 2020

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

Joe Spytek
Peter Shaper

The proposed plan would enable the Company, under the leadership of both Peter Shaper, Speedcast’s CEO, and Joe Spytek, Speedcast’s President and CCO, 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 utilized 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. More information about Speedcast’s Chapter 11 case can be found at this direct infolink…

Speedcast is advised by Weil, Gotshal & Manges LLP as global legal counsel and Herbert Smith Freehills as co-counsel. Michael Healy of FTI Consulting, Inc. is Speedcast’s Chief Restructuring Officer, and FTI Consulting, Inc. is Speedcast’s financial and operational advisor. Moelis Australia Advisory Pty Ltd and Moelis & Company LLC are Speedcast’s investment bankers. KCC is Speedcast’s claims and noticing agent. Centerbridge is advised by Wachtell, Lipton, Rosen & Katz. The Committee is advised by Hogan Lovells US LLP and Husch Blackwell LLP as legal counsel and Berkeley Research Group, LLC as financial advisor.

Filed Under: Funding

Primary Sidebar

Most Read Stories

  • A OneWeb Satellite Is In Danger Of In-Space Collision
  • Virgin Orbit's Launch of First Satellite for Dutch Ministry of Defense
  • UPDATE 2: SpaceX Starship SN9 Sent Forth... Return Landing Is A RUD
  • Direct From SmallSat Symposium, Sir Richard Branson, Founder, Virgin Galactic, + Dan Hart, President + CEO, Virgin Orbit, Keynote Address
  • Direct From SmallSat Symposium: Responsive Launch Services Session

About Satnews

  • Contacts
  • History

Archives

  • 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

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!