Intelsat Seeking Bankruptcy Loan

Bloomberg has an update on Intelsat, which is near bankruptcy:

Intelsat SA is seeking backers for a bankruptcy loan that would keep the satellite service in business under Chapter 11 court protection while it’s waiting for billions of dollars in proceeds from a government spectrum auction. Its bonds led decliners in the high-yield market.

JPMorgan Chase & Co. is shopping the debtor-in-possession loan to institutional investors, many of whom specialize in financial restructuring, according to people with knowledge of the plans. The loan of about $750 million would help fund necessary improvements to Intelsat’s spectrum ahead of the C-Band auction set to begin later this year.

No formal decisions have been made on the loan, said one of the people. The situation remains fluid and plans could change, depending on market conditions, the people said. They asked not to be identified discussing the private arrangements.