Hungary's 4iG sends new debt settlement plan to SpaceCom
On 9 April 2024 the Board of Directors of 4iG has prepared a proposal with two possible outcomes, for debt settlement plan to settle Space Communications Ltd.’s, full bond debt service towards its bondholders. 4iG is a minority shareholder of SpaceCom, owning 20% of its shares.
In case of approval of the proposal under the new debt settlement plan:
- a) 4iG would transfer USD 150 million to SpaceCom, in consideration for the sale and purchase of AMOS-17 satellite owned by SpaceCom and the leaseback of the satellite by SpaceCom or,
- b) 4iG would transfer USD 150 million to SpaceCom in a form of a loan.
4iG has already made several debt settlement plans for SpaceCom:
4iG announced in June 2021 that it would buy a majority stake in the Israeli company. In early October, 4iG acquired, in a public share issue, 9.538% of the shares of SpaceCom, which operates and develops AMOS satellite systems, as a first step of a multi-step transaction.
Through the ongoing series of transactions, 4iG can purchase 20% of SpaceCom's shares, and in February this year it increased its stake to 20% through a capital increase. 4iG can increase its share in Spacecom by additional 31% by October 2025, if the Israeli Ministry of Communications and the shareholders agree to the further acquisition.
Spacecom, listed on the Tel Aviv Stock Exchange, offers broadcast and broadband satellite services to the customers worldwide. As it does in Hungary and the region with AMOS 3 satellite, using the Hungarian geostationary orbit until 2024. After this date, Hungary has the opportunity to gain control over its own orbit and frequency again. CarpathiaSat Plc. was established within 4iG Group to take this advantage, and according to the plans will launch and operate the first Hungarian telecommunications satellite on geostationary orbit. In addition, CarpathiaSat owns the right to operate Hungary’s orbit for twenty years from 2024.
