As Global Eagle presses forward in its efforts to emerge from Chapter 11 bankruptcy protection the company faces new challenges. More than 10,000 contracts are expected to the terminated through the process, nearly all of them without compensation to the other party. And some of those filed objections to that plan.
Global Eagle Entertainment
Intelsat sees upside in commercial aviation vertical
As Intelsat moves towards closing on its recently announced deal to acquire Gogo’s Commercial Aviation business the company faces one question more significant than the rest: How will this deal work out better at Intelsat than it did for Gogo.
Southwest going app-free for IFE
Watching movies and TV on Southwest Airlines is getting a little easier. The carrier’s inflight entertainment portal, powered by Global Eagle’s Airtime platform, no longer requires a dedicated mobile application for consumers to stream content on board. The DRM-protected content can instead be consumed in the web browser of the devices.
Global Eagle’s connectivity business shines as content falters
Global Eagle quietly released its Q2 2020 earnings last Friday and the numbers are bad. But, in at least one context, not nearly as bad as they could have been. Somehow the company’s global connectivity business segment managed to eke out a positive margin for the quarter.
Amazon commits $10 billion to Kuiper LEO constellation
What does it take to put a new low earth orbit (LEO) satellite constellation into service? The myriad technical challenges are not to be underestimated, of course, but a lot of it comes down to money. In the case of the Amazon Kupier project that’s a $10 billion commitment.
Long live the Queen: The Weekly Wrap
Some 747 farewells transitioning into possible electric aircraft growth. Plus an interview about the upcoming FTE/APEX Virtual Expo and lots more!
Global Eagle refocuses on long-term outlook
There is an air of optimism, of relief emanating from the C-Suite at Global Eagle this week. And, to be sure, a realization that massive amounts of work remain for the company to truly succeed, but a conversation with CEO Josh Marks and President Per Noren suggests massive optimism now that the company’s interest payment burdens halve thanks to an agreement to convert debt to equity through the Chapter 11 bankruptcy filing made on Wednesday.
Global Eagle secures $80 million DIP financing in Chapter 11 bankruptcy filing
Global Eagle will restructure and recapitalize under Chapter 11 of the US Bankruptcy code. Substantially all of the company’s assets are to be acquired for $675 million, reducing total debt by approximately $475 million. The deal also includes $80 million in fresh debtor-in-possession financing to ride out the current downturn.
Cutting connections: Reviewing the connected aircraft retirements
Hundreds of aircraft rapidly retired from service. Hundreds more shifted into limbo, unclear of when they might fly again. The news no longer surprises, though some of the retirements bring about a sense of loss. For inflight connectivity vendors the impact is more than a sense of loss, however, as it maps to real revenue shortfalls with the aircraft removed from service.
Time is running out for Global Eagle’s financial restructuring
Global Eagle bought itself a few extra weeks. Literally. The company missed an $11 million interest payment on 9 July but negotiated an extension to the end of the month before it will be considered in default on the loan.