Global Eagle
Successfully Completes Sale to Investor Group
and Operations Emerge from Restructuring Process
March 23, 2021
Global Eagle
Entertainment Inc. has successfully completed
the previously announced sale of substantially
all of the Company’s assets to a group
comprising the Company’s first-lien investors
and its operations have emerged from the Chapter
11 restructuring process. Consistent with the
Company’s post-restructuring focus on mobility,
the Company also announced it has completed the
sale of its legacy non-governmental organization
(NGO) and African fixed-site land business to
Marlink AS.
“Today marks the beginning
of an exciting new chapter for Global Eagle,”
said Joshua Marks, Chief Executive Officer of
Global Eagle. “Having successfully completed our
sale and restructuring process, and now focused
fully on mobility, the Company benefits from a
stronger balance sheet, enhanced liquidity and
blue-chip backing from new owners. We are
well-positioned to invest in innovation, drive
growth in our business, and continue supporting
our customers as they adapt to evolving
passenger and guest needs. I appreciate the
steadfast support Global Eagle’s new owners have
demonstrated throughout this process, and I look
forward to working closely with them as we build
on the Company’s strong foundation and worldwide
customer base to execute on the compelling
opportunities ahead.”
Global Eagle’s solutions
integrate connectivity from multiple sources,
including high-speed satellite networks and
terrestrial wireless systems, and on-board media
for compelling guest experiences in the air or
at sea. The Company’s competitively
differentiated, open-architecture and
multi-platform satellite network provides
unparalleled scalability, reliability and future
compatibility with next-generation technologies,
enabling Global Eagle to uniquely meet the
evolving needs of its customers. The Company is
also strategically focused on enhancing
passenger and guest experiences with new and
exclusive media partnerships, proprietary
cloud-based editing, local content, and
available integrated distribution through Global
Eagle’s satellite connectivity network.
Marks added, “I would like
to thank our customers, vendors and business
partners for their unwavering support throughout
this process. I would also like to thank our
employees for their continued dedication to
serving our clients with outstanding solutions
and support. Our success in this process is a
testament to their commitment to Global Eagle
and our stakeholders.”
Through its sale and
restructuring, Global Eagle reduced its total
debt by $487.5 million and increased its
liquidity with a $217.5 million investment from
the Company’s new owners. The close of the sale
will not have any material impact on Global
Eagle’s operations.
As previously announced,
Global Eagle’s new owners include certain funds
managed by affiliates of Apollo Global
Management, Inc., Eaton Vance Management,
Mudrick Capital Management, Crestline Investors,
Inc., certain funds and accounts managed by
Sound Point Capital Management, certain funds
and accounts managed by Arbour Lane Capital
Management, L.P., and certain funds and accounts
under management by BlackRock Financial
Management, Inc., among others.
Pursuant to the Company’s
Chapter 11 plan of liquidation (the “Plan”)
confirmed by the court on January 29, 2021,
Global Eagle’s stock, which currently trades on
the OTC market under “GEENQ”, will be cancelled
upon the effective date of the Plan.
Latham & Watkins LLP is
serving as the Company’s legal counsel.
Greenhill & Co., Inc. is serving as the
Company’s financial advisor and Alvarez & Marsal
is serving as the Company’s restructuring
advisor. Gibson, Dunn & Crutcher LLP is serving
as legal counsel to the ad hoc first lien lender
group and new owners of the Company. Rothschild
& Co is serving as financial advisor to the ad
hoc first lien lender group and new owners of
the Company.