Speedcast has announced that the US Bankruptcy Court for the Southern District of Texas has confirmed its proposed Plan of Reorganisation, clearing the path for the company to successfully complete the Chapter 11 process and begin its new life under the ownership of investment firm Centerbridge Partners.
The process will be completed after receipt of final regulatory approvals and satisfactory completion of customary closing conditions, which is expected by the end of the first quarter of 2021.
Under the terms of the plan, Speedcast is set to emerge with a new $500 million equity investment from Centerbridge, which will be used in part to repay all of its $285 million debtor-in-possession financing, as well as a permanent reduction of all of the $634 million senior secured debt of the company.
The plan also provides for a cash payment to holders of secured claims and to certain of Speedcast’s critical trade vendors, while unsecured creditors will share in recoveries from a litigation trust. Existing shareholders are not entitled to any recovery and will no longer have an equity interest in the reorganised firm.
Joe Spytek will take on the role of Speedcast’s Chief Executive Officer, leading the company upon emergence under the new Centerbridge ownership. Mr Spytek has served as Speedcast’s President and Chief Commercial Officer for the last year after being tapped to join the organisation to help implement its turnaround.
“With a bolstered financial foundation and with the support of Centerbridge, one of the world’s leading investment funds, Speedcast is well-positioned to maximise its full potential as the company works to build a platform that addresses customers’ most demanding operations and application requirements now, and in the future,” he said.
“Looking ahead, this agility and commitment to innovation will continue as Speedcast keeps raising the bar for itself and the industry as a whole.”