The economic uncertainty driven by the Covid-19 pandemic has pushed struggling companies over the edge into bankruptcy proceedings.
Intelsat, which provides satellite services to customers in the media and government sectors, said it saw significant reductions in demand because of the pandemic.
The company secured $1 billion in debtor-in-possession financing, which will help provide liquidity during the restructuring process. Intelsat reported revenue of $2.1 billion at the end of 2019.Bryan Thomas | Getty ImagesIts debt was largely the legacy of a leveraged buyout by private-equity firms TPG Capital and Leonard Green & Partners, which bought it for $3 billion in 2011. J.Crew had hoped to ease some of its debt burden by taking its more successful Madewell brand public this spring.
The retailer had roughly $2.5 billion in annual sales, according to Moody's. But with all its locations forced to close temporarily to halt the spread of Covid-19, sales slowed to a trickle. As part of the bankruptcy proceedings, J.Crew's lenders will convert around $1.65 billion of its debt into equity. The retailer also secured $400 million in financing from current lenders in order to stay in operation during its restructuring.as part of an agreement to sell all of its business and assets to British private equity firm Lion Capital.
As part of the sale agreement, Lion Capital will provide debtor-in-possession financing that will help support the company's operations when combined with its projected cash flows. The private equity firm was already an investor in John Varvatos,
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
J.C. Penney Halts TradingIt’s widely believed that Penney’s will reveal it is filing for bankruptcy protection.
Read more »
J.C. Penney makes $17 million interest payment, will continue to weigh its optionsJ.C. Penney Co. Inc. undefined announced Friday that it has made an interest payment on its senior secured term loan credit facility, about $17 million, and...
Read more »
J.C. Penney set to file for bankruptcy in coming days: reportsJ.C. Penney Co. Inc. is poised to file for bankruptcy protection in the coming days, according to multiple reports Thursday. Reuters reported the filing could come next week, while CNBC reported it could come as soon as Friday. The battered retailer has a roughly $4 billion debt load, and was facing serious financial problems even before the coronavirus pandemic forced it to temporarily shut all its stores. Last month, the Wall Street Journal reported the company was in advanced talks for bankruptcy funding, and was seeking a loan package of $800 million to $1 billion to keep its operations afloat during a potential bankruptcy process. J.C. Penney operates more than 800 stores in the U.S., employing about 90,000 people. Its shares have plunged 83% year to date, compared to the S&P 500's 12% decline.
Read more »
J.C. Penney Down to the Wire in Bankruptcy TalksJ.C. Penney Co. Inc. has been racing to secure the financing it needs to see it through a bankruptcy.
Read more »
How Covid-19 Is Changing the Language in EmailsWork emails during the coronavirus pandemic must walk a fine line between being sensitive and oversharing.
Read more »
Will The Pandemic-Inspired Wave Of Unionization Efforts Lead To Greater Protections?After a drop in union membership in recent decades, worker activism is seeing a resurgence as COVID-19 continues to ravage the U.S. economy and endanger its workforce. wamu885
Read more »