Speedcast, a satellite telecommunications provider, has reinvigorated itself to come from bankruptcy protection and run through private equity ownership. The company declared this move to alert its customers to come back for services.
Centerbridge Partners explained that it took ownership of this company after penning the regulatory and administrative requirements. The company, through its spokesperson, stated that it would be pumping $500 million into Speedcast to set it free from its bankruptcy problem. The company added that the acquired entity will no longer be affiliated with Australia but assumes US ownership. The advisory committee told the company that this move would place it at an advantage in the new market that it is entering.
The new chief executive of Speedcast, Joe Spytek, stated that this announcement is crucial for the revival of the company from its tarnished image. He added that the real work has now started since the company will be keen to avoid the mistakes that placed it in this financial position. Experts anticipate seeing a Speedcast satellite company with a new business shape, especially with its assumption of US ownership. The company must illustrate that it has stable operations and a new technology base that meets the customer demands across the board. This new appearance will motivate investors to come and see what the business has to offer.
Speedcast requested inclusion under the Chapter 11 bankruptcy protection system about one year ago. This move came after the deterioration of the operations of the company when the pandemic struck the satellite industry forcing small companies like Speedcast to shut down. In Speedcast’s efforts to become a mega-global remote communications provider and satellite service provider, the company accumulated about $700 million in debt through the years.
This amount should have brought the company into the satellite service industry limelight but made the company enter financial problems. Spytek explained that the acquisitions that had been promised to the company are what backpedaled it into debts. These contracts made the company switch from service delivery to business integration 5o meet the demands of the 60 networks that it is currently serving.
The managing director of Centerbridge, Jared Hendricks, explained that they want the management of Speedcast to get back on its feet and establish the company in a progressive direction. He added that the company has the potential that the acquisitions and other unnecessary contracts quenched. Hopefully, the company can rise to the glory that it had anticipated to witness.