Avanti’s deadline closes in on £110m debt
Satellite operator Avanti Communications is gearing up to repay its $150m (£110m) debt after the struggling broadband provider negotiated an extension.
According to the Telegraph, the deadline for repayment is now February 28 after the British satellite communications firm raised millions of pounds in bonds to fund its satellite launches to reach the most remote parts of the country.
However, Avanti faced financial difficulty, when it failed to secure high enough returns on its investment, and in 2018, opted for a debt-for-equity swap that handed control to its lenders, the American hedge funds Mast, Solus and Tennenbaum.
It has since secured a number of rescue schemes in order to complete contracts with government defence departments and mobile network operators.
Avanti provides backhaul to BT’s EE mobile division for its UK government emergency services.
Last February, the company secured a year’s grace from lenders by negotiating a last-minute extension, after receiving a $30m (£22m) investment.
At the time, chief executive Kyle Whitehill said: “The material maturity extension and additional capital injection represent a strong vote of support from our existing investors in the business, its prospects and the management team.”
A spokesperson for Avanti told City A.M.: “We have extended our loan facility while we finalise an imminent announcement.”