Mexico’s Satmex files for bankruptcyApril 12, 2011 at 8:31 am | Posted in Aerospace Law Interfaces | Leave a comment
by Sara M. Langston with the blog faculty
(Reuters) – Mexican fixed satellite services provider Satelites Mexicanos S.A. de C.V. (Satmex) filed for bankruptcy protection in a Delaware court as part of a prepackaged plan with creditors to reduce its debt.
In court papers, the company said it will raise about $325 million in new financing by issuing high yield debt. It will also raise $96.2 million of new equity through a rights issue.
As part of the restructuring, Satmex will use the $325 million to repay its first priority notes and fund the completion of Satmex 8, a satellite scheduled to be launched in 2012. Satmex currently has three satellites.
Prearranged bankruptcies allow companies and their creditors to agree on a reorganization plan prior to the Chapter filing. Companies that make prepackaged filings are often able to exit court protection in 30 to 90 days.
In its Chapter 11 petition, Satmex listed assets of $441.6 million and liabilities of $531.6 million. Two units, Alterna TV Corp and Alterna TV International Corp, were also included in the bankruptcy filing.
The case is In re: Satelites Mexicanos S.A. de C.V, U.S. Bankruptcy Court, District of Delaware (Delaware), No: 11-11035. (Reporting by Santosh Nadgir in Bangalore; Editing by Joyjeet Das)