Supply Chain Council of European Union | Scceu.org
Procurement

Global Eagle bankruptcy exit plan approved – PaxEx.Aero

Global Eagle's Albatross One on the ramp in Ottawa during the Telesat LEO test flight efforts

Despite multiple objections from creditors raised in recent weeks Global Eagle secured approval from the US Bankruptcy Courts to sell substantially all of its assets to its first lien investors. The Chapter 11 exit wipes $475 million in debt from the company’s books while adding significant liquidity to the operation.

We are confident this is the best path forward for our company and our stakeholders as we continue providing our airline, cruise line and other customers with high-speed WiFi and engaging content, enabling them to connect millions of people anywhere, anytime. I would also like to thank our employees for their continued dedication to supporting our customers as they plan for the COVID-19 recovery and beyond.

– Joshua Marks, CEO



The investor group includes Apollo Global Management, Inc., Eaton Vance Management, Arbour Lane Capital Management, L.P., Mudrick Capital Management, Sound Point Capital Management, Carlyle Group, or one or more of their respective affiliates, and certain funds and accounts under management by BlackRock Financial Management, Inc., among others. The Investors promised $125 million in exit funding for the operation, including $80 million available during the bankruptcy process.

The deal is expected to close in Q1 2021. Global Eagle continues to provide services to its aviation, maritime, enterprise, and government mobility customers around the world. The sale is not expected to have any material impact on those operations.

The company’s negotiations with some contractual counterparts continues, even with this approval. While some objections, including those of Boeing, Intelsat, Southwest Airlines, and Turkish Technic were resolved prior to the ruling, many more remain. SES, Panasonic Avionics, American Airlines, Delta Air Lines, Sony Music, ViacomCBS, Fox News, and a dozen other companies remain in discussions with the company regarding their contracts and what cures might remain for open issues.



More from the Global Eagle bankruptcy and reorganization efforts:


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