Speedcast emerges from bankruptcy with a healthy balance sheet

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TAMPA, Fla .– Satellite communications provider Speedcast came out on Thursday nearly a year under Chapter 11 bankruptcy protection under private equity.

Centerbridge Partners, which manages approximately $ 28 billion in assets, officially took possession of the company after completing all necessary regulatory and administrative requirements. The private equity firm invested $ 500 million in Speedcast in a deal that wiped out all of its debt.

He also sees the former Australia-based company become an American company, which he says will significantly strengthen its presence in the government market.

Joe Spytek, who was promoted from Chief Commercial Officer to CEO in January, said: “Today’s announcement is important for Speedcast and although it is an important milestone, our work is far from over. to be finished.

“Our emergence marks only the beginning of the new Speedcast organization – as a fundamentally improved company and the stable connectivity and technology partner that our customers need in an era of continued divestments and integrations in our industry.”

Speedcast filed for Chapter 11 bankruptcy in April 2020, after a decline in the pandemic-affected energy and shipping markets pushed the company to the brink.

It had accumulated nearly $ 700 million in debt over years of acquisitions to consolidate the fragmented satellite services market, becoming the world’s largest remote communications provider and providing more satellite capacity than any other company. .

Spytek said News that the new Speedcast takes its foot off the gas pedal of acquisition, focusing instead on integrating its business and the more than 60 different networks it currently operates.

Centerbridge Senior Managing Director Jared Hendricks said, “We look forward to supporting Speedcast’s leadership team in building on the strong foundation of the business to realize the growth opportunities that exist as we grow. they are progressing. “

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