Speedcast gets $395m commitment from lenders to support restructuring plan

Speedcast has announced that it has received a US$395 million equity commitment from Centerbridge Partners and its affiliates, one of its largest lenders, as the company looks to restructure the business and emerge from Chapter 11 bankruptcy proceedings.

This financial commitment provides support for Speedcast’s plan of reorganisation, the company said, and has the support of both Centerbridge and the Official Committee of Unsecured Creditors set up under the bankruptcy process.

Centerbridge’s proposed $395 million equity investment also provides the opportunity for Speedcast’s existing secured lenders to participate in the equity commitment on a pro-rata basis to support the reorganisation plan.

The satcom provider says that it remains focused on supporting the connectivity needs of its customers and fully intends to continue its global operations uninterrupted as the process is completed.

Centerbridge has also committed to providing, if needed, debtor-in-possession (DIP) financing of up to US$220 million on favourable economic terms, to fund the Chapter 11 plan process and to ensure Speedcast can continue to meet its financial commitments.

The reorganisation plan will provide for cash payments to holders of secured claims, with relevant trade creditors to be provided a partial cash payment for their unsecured claims by sharing in recoveries from a litigation trust. The plan does not contemplate any recovery for existing shareholders, who would no longer have an equity interest in the reorganised Speedcast Group.

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Rob O'Dwyer

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