Intelsat SA, a satellite communications company, filed for Chapter 11 bankruptcy

protection on May 13, 2020. The company faced significant challenges due to its high
debt burden, which was primarily attributed to its substantial investments in satellite
infrastructure and technology upgrades. Intelsat's Chapter 11 filing aimed to
restructure its debts and financial obligations to ensure its long-term viability.

Bankruptcy Process:
Intelsat's decision to file for Chapter 11 bankruptcy protection was a strategic move to
reorganize its finances while continuing its operations. Chapter 11 allows companies to
negotiate with creditors and stakeholders to develop a plan for debt restructuring. This
process provides Intelsat with breathing room from creditor actions and lawsuits while
it devises a strategy to emerge from bankruptcy stronger. Additionally, Chapter 11
enables Intelsat to access debtor-in-possession financing, which provides liquidity to
support its operations during the restructuring process (Shin, 2020).

Capital Structure:
Intelsat's capital structure heavily influenced its bankruptcy filing. The company's
capital stack was burdened with substantial debt, with a debt-to-equity ratio that
became unsustainable, particularly amid industry challenges and economic
uncertainties. Intelsat's significant debt obligations limited its financial flexibility and
hindered its ability to invest in innovation and growth initiatives. During the bankruptcy
process, Intelsat aimed to renegotiate its debt terms, potentially converting a portion of
its debt into equity to reduce leverage and strengthen its balance sheet (Sandler, 2020).

Legal Structure:
Intelsat's multinational operations and legal structure added complexity to its
bankruptcy proceedings. As a global company, Intelsat operates in multiple
jurisdictions, each with its own set of bankruptcy laws and regulations. This legal
complexity could impact the treatment of creditors and stakeholders in the bankruptcy
process. Intelsat must navigate the intricacies of different legal systems to develop a
restructuring plan that satisfies all parties involved. Additionally, Intelsat's legal
structure may influence the jurisdiction in which it files for bankruptcy and the
applicable laws governing the process (Levin, 2020).

In conclusion, Intelsat's progress through the bankruptcy process is shaped by its

capital structure, legal structure, and the specific provisions of Chapter 11 bankruptcy.
While the company aims to restructure its debts and emerge from bankruptcy as a
stronger entity, it must overcome challenges related to its debt burden, global
operations, and legal complexities.
 Total Words - 368

References:

Shin, D. (2020, May 14). Intelsat files for Chapter 11 bankruptcy protection. Reuters.
https://www.reuters.com/article/us-intelsat-bankruptcy/intelsat-files-for-chapter-11-
bankruptcy-protection-idUSKBN22Q2JR

Sandler, L. (2020, May 14). Intelsat files for bankruptcy with plan to revamp balance
sheet. Bloomberg. https://www.bloomberg.com/news/articles/2020-05-14/intelsat-files-
for-bankruptcy-with-plan-to-revamp-balance-sheet

Levin, B. (2020, May 14). Satellite company Intelsat files for bankruptcy protection. The
Wall Street Journal. https://www.wsj.com/articles/satellite-company-intelsat-files-for-
bankruptcy-protection-11589462411