Intelsat files for Chapter 11 bankruptcy
The latest casualty of severe business disruptions
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Satellite operator Intelsat SA said late on Wednesday that it filed for Chapter 11 bankruptcy protection, making it the latest casualty of severe business disruptions caused by the COVID-19 pandemic.
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The company said it had obtained $1 billion in debtor-in-possession financing.
The pandemic has inflicted widespread financial pain across sectors including retail and aviation, with many companies considering bankruptcy options as a way to rework their finances and save money on debt payments.
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Intelsat is among a number of companies that will participate in the accelerated clearing of C-band spectrum under the Federal Communications Commission (FCC) order.
"To meet the FCC's accelerated clearing deadlines and ultimately be eligible to receive $4.87 billion of accelerated relocation payments, Intelsat needs to spend more than $1 billion on clearing activities," the Luxembourg-based company said in a statement.
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The FCC declined to comment.
(Reporting by Rama Venkat and C Nivedita in Bengaluru; Editing by Anil D'Silva)