On Friday, the satellite communications company announced it planned to reduce debt from $15bn to $7bn by issuing new stock, with 95% of shares going to unsecured creditors of subsidiary Intelsat Jackson.

Intelsat wrote that the plan has been the subject of extensive negotiations with the its creditors and resolves a multitude of complex issues among them. It has the support of holders of approximately $3.8bn of the company’s funded debt, it said.

“These supporting creditors have executed a plan support agreement that binds their support for the company’s plan. Intelsat looks forward to continuing to engage with all stakeholders to gain additional support for its plan across the capital structure,” the firm wrote.

Intelsat filed for bankruptcy court protection in May 2020 to eliminate its $15bn debt and release finance to purchase satellites to clear C-band spectrum for US 5G networks. According to Space News it stands to receive $4.86bn from a US Federal Communications Commission auction. Space News reports that Intelsat ordered seven satellites as part of its spectrum-clearing plan.

Intelsat has requested a 17 March 2021 bankruptcy court hearing on the reorganisation proposal. If approved, the company could emerge from Chapter 11 in the second half of 2021, according to an Intelsat news release.