Luxembourg based satellite company Intelsat Corp SA. (I) announced that it had filed for chapter 11 bankruptcy earlier in the week. The tech company says coronavirus pandemic is the main reason it decided to seek bankruptcy protection.
The bankruptcy was filed in the U.S. Bankruptcy Court for the Eastern District of Virginia.
Under the filling, Intelsat has listed down assets and liabilities in the range of $10 billion to $50 billion. In addition, the company indicated it had already received $1 billion in debtor in possession financing.
This comes slightly over a month after the company withdrew from payment of dividend for the entire year, during the same announcement the company also hinted that it will delay in filing its first quarter results for the year.
Intelsat is among tech companies expected to participate in upcoming accelerated clearing of C-band spectrum under the Federal Communications Commission (FCC) order which looks forward to support laying infrastructure and establishing 5G wireless network across the United States.
“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,” said Intelsat.
The company’s wing Intelsat General which provides services to U.S government and allied military clients said it’s not part of the Chapter 11 bankruptcy proceedings.