Satmex Restructuring Gets US Approval

Judge Robert Drain of the bankruptcy court of the Southern District of New York has approved the reorganization plan presented by Mexican satellite operator Satélites Mexicanos (Satmex) in August. The restructuring plan has been agreed by at least two-thirds of the company’s creditors and is the final stage of the company’s reorganization following the conclusion of its bankruptcy proceedings in Mexico at the end of July. The underlying bankruptcy agreement lays out that debt will be reduced from around $600 million, including interest, to $375 million, plus capitalization of between $335 million and $350 million, of which $60 million will become working capital. High-yield bonds will account for 80% of total shares and 45% of voting shares; the government will hold 20% of total shares and 55% of voting shares. Non-guaranteed debtholders will swap their debt for shares in the company.