Global Eagle Entertainment Inc.
Case No. 20-11835
On July 22, 2020, Global Eagle Entertainment Inc. (“Global Eagle” or the “Company”) announced that it has agreed upon a definitive asset purchase agreement under which substantially all of the Company’s assets will be sold for total consideration of $675 million to holders of approximately 90% of the Company’s senior secured first-lien term loans. This investor group is led by lenders managed by Apollo Global Management, L.P., Eaton Vance Management, Arbour Lane Capital Management, Sound Point Capital Management, Mudrick Capital Management, or one or more of their respective affiliates, and certain funds and accounts under management by BlackRock Financial Management, Inc. (the “Investor Group”).
This transaction will reduce the Company’s total debt by approximately $475 million and provide significant additional liquidity to the business, positioning Global Eagle to continue driving long-term innovation and growth and serving its customers around the world.
To facilitate the sale process, Global Eagle and certain of its U.S. subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
During and following this process, Global Eagle will continue operating and serving its customers in the ordinary course, and the planned ownership transition is not expected to have any material impact on the Company’s operations. Global Eagle remains focused on supporting its customers with
best-in-class media, content and connectivity solutions for aviation, maritime, enterprise and government mobility end-markets.
On July 23, 2020, the Company received interim court approval to access $30 million of the $80 million in debtor-in-possession (“DIP”) financing it obtained from the Investor Group. This new financing, together with cash on hand and cash generated from ongoing operations, is expected to provide ample liquidity to support the business during the sale process. The Investor Group has also agreed to provide additional investment in the business in the form of a $125 million exit facility, subject to certain conditions.
The proposed transaction will be implemented pursuant to the terms of a Restructuring Support Agreement reached by the Company and the Investor Group. The proposed transaction is being undertaken pursuant to a court-supervised sale process under Section 363 of the U.S. Bankruptcy Code, with the Investor Group serving as the “stalking-horse” bidder, and subject to higher or better offers and other customary conditions.
The Company has filed a number of customary motions seeking court approval to support its operations during the court-supervised process, including payment to vendors and partners of Global Eagle’s affected U.S. subsidiaries in full under normal terms for goods and services provided on or after the filing date. Vendors to the Company’s non-U.S. subsidiaries will continue to be paid in the ordinary course, regardless of when goods or services were delivered.
Global Eagle’s case has been assigned to Judge John T. Dorsey and Case No. 20-11835. The Docket can be accessed on this website or through the website maintained by the United States Bankruptcy Court for the District of Delaware.
Additional information regarding Global Eagle’s restructuring process, including press releases and frequently asked questions, is available at www.ConnectWithGlobalEagle.com.
Important Information & Dates
On August 19, 2020, the Bankruptcy Court entered an order approving the bidding procedures in connection with the sale of the Debtors' assets.
Please take note of the following important dates related to the sale:
• Bid Deadline: October 5, 2020, at 4:00 p.m., prevailing Eastern Time
• Auction: October 9, 2020, at 10:00 a.m., prevailing Eastern Time
• Sale Hearing: October 15, 2020 at 10:00 a.m., prevailing Eastern Time.
Please click below to view all documents related to the sale:
Meeting of Creditors
The Meeting of Creditors will be held telephonically on August 31, 2020 at 2:00 p.m., (prevailing Eastern Time):
Please click to here to view and download the U.S. Trustee's Notice of Telephonic Section 341 Meeting.
Please click to here to view and download the Notice of Meeting of Creditors & Commencement of Case.
First Day Hearing
A telephonic hearing on the Debtors' First Day Motions was held on July 23, 2020 at 2:00 p.m (ET) before the Honorable John T. Dorsey, United States Bankruptcy Court for the District of Delaware.
A final hearing on certain first day motions will be held on August 17, 2020 at 11:00 a.m. (ET).
Please click below to view and download the Debtors' First Day Motions and Orders:
Latham & Watkins LLP (NY)
885 Third Avenue
New York, NY 10022
George A. Davis
Madeleine C. Parish
Latham & Watkins LLP (CA)
355 South Grand Avenue
Los Angeles, CA 90071
Ted A. Dillman
Helena G. Tseregounis
Nicholas J. Messana
Young Conaway Stargatt & Taylor, LLP
1000 North King Street
Wilmington, DE 19801
Michael R. Nestor
Kara Hammond Coyle
Betsy L. Feldman
Debtors' Restructuring Advisors
Alvarez & Marsal North America, LLC
2029 Century Park East
Los Angeles, CA 90067
United States Trustee and Court Information
|Case Number||Debtor Name||Petition Date|
|Case Number 20-11835||Debtor Name Global Eagle Entertainment Inc.||Petition Date July 22, 2020|
|Case Number 20-11836||Debtor Name Airline Media Productions Inc.||Petition Date July 22, 2020|
|Case Number 20-11837||Debtor Name Emerging Markets Communications, LLC||Petition Date July 22, 2020|
|Case Number 20-11838||Debtor Name Entertainment In Motion, Inc.||Petition Date July 22, 2020|
|Case Number 20-11839||Debtor Name Global Eagle Entertainment Operations Solutions, Inc.||Petition Date July 22, 2020|
|Case Number 20-11840||Debtor Name Global Eagle Services, LLC||Petition Date July 22, 2020|
|Case Number 20-11841||Debtor Name Global Eagle Telecom Licensing Subsidiary LLC||Petition Date July 22, 2020|
|Case Number 20-11842||Debtor Name IFE Services (USA), Inc.||Petition Date July 22, 2020|
|Case Number 20-11843||Debtor Name Inflight Productions USA, Inc.||Petition Date July 22, 2020|
|Case Number 20-11844||Debtor Name Maritime Telecommunications Network, Inc.||Petition Date July 22, 2020|
|Case Number 20-11846||Debtor Name MTN Government Services, Inc.||Petition Date July 22, 2020|
|Case Number 20-11847||Debtor Name MTN International, Inc.||Petition Date July 22, 2020|
|Case Number 20-11848||Debtor Name MTN License Corp.||Petition Date July 22, 2020|
|Case Number 20-11845||Debtor Name N44HQ, LLC||Petition Date July 22, 2020|
|Case Number 20-11849||Debtor Name Post Modern Edit, Inc.||Petition Date July 22, 2020|
|Case Number 20-11850||Debtor Name Row 44, Inc.||Petition Date July 22, 2020|
|Case Number 20-11851||Debtor Name The Lab Aero, Inc.||Petition Date July 22, 2020|