Speedcast International (ASX:SDA) begins liquidation process

• Speedcast International (SDA) has completed its restructuring process and begun its voluntary liquidation process
• The business has now been transferred over to new owner, the U.S. based Speedcast Holdings, which is in turn owned by Centerbridge Partners
• Following SDA’s restructure, Speedcast International no longer has any assets, having handed everything over as part of its bankruptcy filing
• This means the ASX-listed business can begin the process of de-listing and the voluntary liquidation process
• SDA also stated the liquidation process may allow shareholders to claim capital losses in their future tax returns
• Shares in Speedcast International haven’t traded since February 2020, when shares were trading at 79 cents per share

Speedcast International (SDA) has completed its restructuring process and will now begin the voluntary liquidation process.

The satellite provider filed bankruptcy last year, with the U.S. based company Speedcast Holdings III buying out the company’s assets.

The U.S.-based Speedcast business is in turn owned by Centerbridge Partners, which has invested $500 million into the company, giving it a “clean balance sheet.”

Following this restructure, Speedcast International advises it no longer has any material assets, having handed everything over as part of its bankruptcy filing to wipe its debt.

This means the Australian business can begin the process of de-listing from the ASX and also begin the voluntary liquidation process.

In a market announcement on Friday, Speedcast International stated the liquidation process may allow shareholders to claim capital losses.

“As there will be no material assets or liabilities remaining in Speedcast International Limited, the liquidators may be able to make a Loss Declaration in the current tax year, in which case capital losses may be able to be claimed
by certain shareholders in their FY21 tax returns,” SDA stated.

“This will depend on, among other things, the timing of the voluntary liquidation process, shareholders approving the liquidation at a future general meeting and the tax circumstances of each shareholder,” it added.

Shares in Speedcast International haven’t traded since February 2020, when shares were trading at 79 cents per share.