The US Bankruptcy Court for the Southern District of Texas has confirmed Speedcast International’s and certain of its affiliates’ re-organisation plan.
Speedcast is a major provider of satellite communications to the cruise industry.
This confirmation clears the path for the company to successfully complete the Chapter 11 process after receiving final regulatory approvals and satisfying customary closing conditions, which is expected by the end of the first quarter of 2021, Speedcast said.
The company also said that it is poised to emerge with a significantly strengthened balance sheet and the support of Centerbridge Partners and its affiliates as its new owner.
“The Court’s confirmation of the Plan marks a key milestone in the Company’s efforts to become a stronger business and positions us to emerge in the near term, having achieved our goals,” said Stephe Wilks, Speedcast Chairman.
“Throughout the restructuring process, the company’s global workforce has delivered on its commitments while adapting to change. On behalf of the Board, we are immensely grateful for the ongoing patience and trust that the company’s employees, customers and partners have shown in this process,” Wilks added.
Joe Spytek will take on the role of Speedcast’s CEO, to lead the company upon re-emergence under the new Centerbridge ownership. Spytek has served as Speedcast’s President and CCO for the last year after being tapped up 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,” said Spytek.
“Looking ahead, this agility and commitment to innovation will continue as Speedcast keeps raising the bar for itself and the industry as a whole,” he said.
“Speedcast’s best-in-class technology and connectivity solutions provide a leading value proposition to the company’s customers, enhancing productivity, communication and safety,” said Jared Hendricks, Senior Managing Director, Centerbridge. “We continue to be excited about investing behind Joe and the Speedcast team’s innovation and support of its customers and partners in the next phase of growth for the company.”
Under the terms of the plan, Speedcast is set to emerge with a new $500 mill equity investment from Centerbridge, which will be used in part to repay all of its $285 mill debtor-in-possession financing, as well as a permanent reduction of all of its $634 mill senior secured debt.
Speedcast is advised by Weil, Gotshal & Manges as global legal counsel and Herbert Smith Freehills as co-counsel. Michael Healy of FTI Consulting is Speedcast’s Chief Restructuring Officer, and FTI Consulting is Speedcast’s financial and operational advisor.
Moelis Australia Advisory and Moelis & Company are Speedcast’s investment bankers. KCC is Speedcast’s claims and noticing agent.
Centerbridge is advised by Wachtell, Lipton, Rosen & Katz.