Company: SGBAF
Filing Date: 2025-01-17
Form Type: DRSLTR
Source: 0000950123-25-000379
Chunk: 12

Company: SES S.A.
Filing Date: 2025-01-17
Form: DRSLTR
Chunk 12
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: The Company acknowledges the Staff’s comment and advises the Staff that from the date that Intelsat commenced its Chapter 11 cases in Bankruptcy Court, May 13, 2020, through to the reorganization emergence effective date of February 23, 2022, Intelsat noted a few impairment indicators at December 31, 2020. As a result of the indicators, Intelsat proceeded to perform quantitative tests for the year ended December 2020. The results of these quantitative tests indicated an enterprise value of $6.4 billion. Intelsat noted that both the trade name and the orbital slots had a carrying value that was greater than the fair value, thus in December 2020, Intelsat recorded impairment charges to its trade name and orbital slots for $8.0 million and $138 million, respectively. The carrying value of goodwill was less than the fair value therefore Intelsat determined that goodwill was not impaired as of December 31, 2020. On December 17, 2021, the Bankruptcy Court entered an order (docket 3894) confirming the Debtors Fourth Amended Joint Chapter 11 Plan of Reorganization (the “Plan”). On February 23, 2022, or the “Effective/ Emergence Date,” the Plan became effective pursuant to its terms and the Intelsat debtors party to the proceedings emerged from their Chapter 11 Cases (docket 4279). Per the Plan, Intelsat’s estimated range of enterprise values was between $10.25 billion and $11.75 billion, with a midpoint of $11.0 billion. This range was then used as the starting point to revalue Intelsat’s assets and liabilities. Goodwill write-down at Fresh Start Intelsat implemented Fresh Start Accounting as of the emergence date. Under Fresh Start Accounting, Intelsat remeasured all its assets and liabilities at fair value. Goodwill is a residual asset and the Goodwill balance recognized upon implementation of Fresh Start Accounting represents the difference between the reorganization value and the remeasured values of the company’s assets and liabilities. Intelsat recognized certain new assets in connection with Fresh Start Accounting related to its rights to future accelerated relocation payments (the “ARP Rights”) The value of the ARP Rights was based on the expected compensation associated with the Final FCC Order for the accelerated clearing of the C-Bandspectrum. The ARP Rights represented Intelsat’s entitlement to the ARPs from the FCC and these rights were recognized