Global Eagle Files for Chapter 11 Bankruptcy

July 24th, 2020   •   Comments Off on Global Eagle Files for Chapter 11 Bankruptcy   
Global Eagle Files for Chapter 11 Bankruptcy

Global Eagle said in a July 22 announcement that it has agreed upon a “stalking horse” asset purchase agreement, and its assets will be acquired for $675 million by a group of approximately 90 percent of its loan holders. (Global Eagle)

Global Eagle has entered Chapter 11 bankruptcy protection in order to facilitate a sale of its assets to a group of loan holders. The company, which provides In-Flight Connectivity (IFC) to airlines and connectivity to the maritime market, has been hit as the COVID-19 pandemic has affected travel.

The company said this will not impact it’s operations, and CEO Joshua Marks positioned the move as setting up Global Eagle for “long-term success.”

“We expect to emerge from this process with a stronger balance sheet, significantly reduced debt and substantial liquidity, well-positioned to continue supporting our global customers into the future,” Marks said. “We remain steadfast in our belief that our airline, cruise line and other customers will recover from COVID-19 and generate significant long-term demand for our services.”

Global Eagle said in a Wednesday announcement that it has agreed upon a “stalking horse” asset purchase agreement, and its assets will be acquired for $675 million by a group of approximately 90 percent of its loan holders, led by lenders managed by Apollo Global Management, Inc., Eaton Vance Management, Arbour Lane Capital Management, L.P., Sound Point Capital Management, Mudrick Capital Management, and certain funds and accounts under management by BlackRock Financial Management, Inc.

Global Eagle plans to obtain $80 million in debtor-in-possession financing from and expects this financing to provide liquidity to support its operations during the sale process.

Global Connected Aircraft Podcast logo Want to hear more on aircraft connectivity applications? Check out the Global Connected Aircraft Podcast, where Avionics editor-in-chief Woodrow Bellamy III interviews airlines and industry influencers on how they’re applying connectivity solutions.

Jeffrey Rosen, managing director with the Credit business segment of Apollo commented: “Global Eagle is a market leader in delivering in-flight and at-sea passenger experiences with entertainment, content and connectivity. While the company reports that it has been impacted in recent months by COVID-19, we believe it benefits from a blue-chip customer base, industry-leading partnerships, and an innovative platform built through years of strategic investments in technology. We believe Global Eagle’s services will continue to be core to the passenger experience over the long term.”

The post Global Eagle Files for Chapter 11 Bankruptcy appeared first on Aviation Today.

Check FastApn access for commercial satcoms at Fastapn

Flytlink – Avionics, Satcom’s and IFE Consultants