Speedcast International Ltd Speedcast Files Motion Related to Refinanced DIP Facility

 Sep 15, 2020

Speedcast International Limited has filed a motion to replace its debtor-in-possession (DIP) financing in an aggregate amount of US$285 million, to be funded by Centerbridge Partners. The motion was filed with the United States Bankruptcy Court for the Southern District of Texas on September 11, 2020. The motion follows a filing by Black Diamond, a majority pre-petition lender and the current DIP financing provider, of a notice of default on the original DIP facility, which occurred following Speedcast's entry into a proposed equity commitment agreement with Centerbridge.

The proposed refinanced DIP facility is an increase of US$100 million over previous DIP financing and would fund the company's path from Chapter 11 with maximum flexibility. The new DIP financing would equip Speedcast to continue its normal-course of operations, including serving customers and supporting business continuity while the company progresses negotiations with its largest lenders. Speedcast is currentl! y evaluating revised recapitalisation proposals with a view to maximising value for all creditors and certainty of outcome for all stakeholders.