Global Eagle completed its bankruptcy reorganization, announcing its emergence from the court-sanctioned process with $217.5 million in exit financing. The company also reasserts its focus on mobility markets including aviation, maritime, energy, and government sectors thanks to a divestiture of non-core businesses.
Today marks the beginning of an exciting new chapter for Global Eagle. Having successfully completed our sale and restructuring process, and now focused fully on mobility, the Company benefits from a stronger balance sheet, enhanced liquidity and blue-chip backing from new owners.– Joshua Marks, Chief Executive Officer of Global Eagle
The closing details an overall debt reduction of $487.5 million. When it was initially announced the expectation was approximately $475 million. The improvement could be attributed to the non-core divestiture. The exit financing also increased from $125 million expected mid-2020 to $217.5 million announced today.
Also as part of the plan, Global Eagle’s stock currently trading on the OTC market under GEENQ will be cancelled upon the effective date of the Plan.
Selling off the distractions
Refocusing on the core mobility business has long been a goal for Global Eagle. That previously included an effort to sell the maritime business, though the numbers came up short then. This time, however, the sale of legacy non-governmental organization (NGO) and African fixed-site land businesses to Marlink AS is secured. While that still leaves the maritime and energy sectors in play, the company believes it can deliver on the broader mobility focus moving forward.
CEO Josh Marks notes that the company is now “well-positioned to invest in innovation, drive growth in our business, and continue supporting our customers as they adapt to evolving passenger and guest needs.”
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