So something interesting happened over the Christmas break that I missed initially. Seabras-1 Bermuda Ltd and Seabras 1 USA LLC have filed for bankruptcy, aiming for a quick reorganization. Seaborn Networks itself is fine, as apparently they structured things such that this was the case. However, it certainly can't have been their preferred path.
So what happened? Well, apparently when a bunch of brand new cables (Seabras-1, BRUSA, Monet) get built on a route such that the available capacity outstrips demand to a region whose economy isn't doing so well, prices tend to fall. So in order to bring Seabras-1's balance into line with the new reality, apparently something had to give.
The companies hope to complete restructuring within Q2 of 2020, without making any moves in the direction of a sales process. However, it seems those debt holders may not be ready to play nice. According to a WSJ article, Seaborn says the private equity group Partners Group Holding AG tried to 'size control' of the process and a lawsuit has been filed. Partners Group invested in the cable back in 2015.
There's surely more to this story, but at this time I don't know the details. Anyone who does is welcome to chime in below.
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