Intelsat S.A. [NYSE: I] disclosed it has filed for chapter 11 bankruptcy protection because of the disruption caused by COVID-19 pandemic. The pandemic impacted many firms including aviation & retail companies and many others. Many are choosing the option of bankruptcy as a way to reorganize their debt load. Intelsat has lodged for bankruptcy in the US court for the Eastern Region of Virginia. The company has detailed the $14 billion debt.
Intelsat detailed its liabilities & assets within a range of $10 bn to $50 bn in the filing. I has also got the $1 billion in debtor-in-possession. I before stated that it has postponed its Q1 results and deferred its 2020 stance.
The firm has stated that it has pulled back its earlier proclaimed financial guidance for FY ending on December 31, 2020. It has also renounced its financial guidance for succeeding years after FY2020. It was predicted that the firm will disclose its quarterly report after June 25, 2020.
Earlier, Intelsat & Andesat disclosed their collaboration to deliver the 3G facilities in remote districts across Peru in May 2020. Both the tech businesses built a new model that is capable of providing fast 3G services to 154 countryside Peruvian areas in 2020.
Shares of I tumbled -35.95% and logged a drop of -0.2806. Intelsat’s current stock price is $0.50 in the last trading session. Its total ROA is -7.60% and ROE is 19.40%. Intelsat has a total gross margin of 81.00% and the operating margin of 18.90%. Intelsat has a total market capitalization of 107.80 million. Telecom firm has a trading volume of 13,297,738 as contrasted to an average volume of 8.08 million.
According to the rules set by Federal communication services, Intelsat may be able to get $4.86 billion for quickly giving up the C-band spectrum so the airwaves could be used by mobile firms to deliver 5G services.
Intelsat CEO stated that the firm is trying to clear the C-band spectrum in the US. The corporation is attempting to come up with a way that reinforced its economic status. One way for Intelsat to restructure its balance sheet is to meet the clearing deadline of FCC in support of 5G wireless infrastructure in the US.