Inmarsat Rejects Oaktree’s Push to Delay Court Hearing

Some investors believe the FCC may issue a ruling that increases the value of the British satellite company

Oaktree Capital had requested a delay to a takeover court hearing around the takeover of Inmarsat. The British satellite company, however, rejected the delay for the November 12 meeting. Oaktree wants greater insight into the status of Inmarsat’s U.S. spectrum holdings.

In March, a private equity-led consortium announced plans to purchase Inmarsat for $6 billion. Private equity firms Apax and Warburg Pincus and two Canadian pension funds beat out other bidders like EchoStar. However, Oaktree Capital – which owns about a 2.85% stake in the British firm – wants to delay.

Howard Marks’ company believes that the Federal Communications Commission will soon make a ruling on U.S. airwaves that might impact Inmarsat’s value. At the moment, the firm Ligado leases the spectrum. Ligado has asked the FCC to adjust the way that it can use it.

Rubric Capital Management Supports Oaktree Capital

Meanwhile, on Tuesday, Rubric Capital Management, which owns 2.2% of Inmarsat sent a letter to the firm’s board of directors.

“In summary, we agree with Oaktree’s assessment: there has been a material change with respect to the applications by Ligado Networks for approval by the United States Federal Communications Commission to deploy its spectrum capabilities in furtherance of its transition to a 5G network,” the company said. “As a result, there is now a very real possibility of a significant increase in the value of the Company in the near term.”

The firm also asked the board of directors to delay the court hearing.

Related: Peter Thiel’s VC Firm is Suing “Winnie Cooper’s” Sister

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November 20, 2019

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