Satmex granted chapter 11 bankruptcy protection

19 Sep 2006

Mexican satellite operator Satmex has been granted chapter 11 bankruptcy protection in the US, according to BNamericas quoting a company statement. Judge Robert Drain of the New York bankruptcy court ruled that the restructuring plan approved for Satmex by Mexican courts is adequate to serve as the basis for bankruptcy proceedings in the US, where most of its creditors reside. Satmex has long struggled with an unmanageable debt pile, but in April formulated a final debt restructuring agreement ending two years of negotiations. More than two thirds of its creditors have indicated that they will accept the deal and Satmex hopes to complete the process and emerge from chapter 11 before the end of the year.