Benzinga | Feb 12, 2021 11:38AM EST

Intelsat Initiates Premeditated Reorganization To Reduce Debt By 50%, Shares Fall

* Intelsat S.A. (OTC: INTEQ) initiated a premeditated reorganization plan backed by creditors worth $3.8 billion towards its debt reduction from $15 billion to $7 billion. A hearing has been requested on March 17, 2021, for court approval.

* In May 2020, Intelsat declared its reorganization towards a robust balance sheet.

* Intelsat acquired the Commercial Aviation business of Gogo (NASDAQ: GOGO) in December 2020 for $400 million.

* The company's long-term debt stood at $14.4 billion as of September 30, 2020, and cash and equivalents stood at $810.6 million. Operating cash flow stood at $163.4 million.

* Intelsat intends to emergence from the Chapter 11 proceedings in the second half of 2021.

* Price action: INTEQ shares are down 10% at $0.765 on the last check Friday.