Eutelsat - comment

In short, the call was predictably negative. Intelsat Eutelsat have clearly shifted their strategic focus away from the legacy business the bonds are secured on, while the delays in the further roll-out of OneWeb are dragging on its value at a time when Starlink are going from strength to strength. The Goodwill impairment of €535m may be non-cash, but is a document to the strategic struggle of replacing a big existing business with a nascent new one.  Contract signatures for the sale and lease-back of ground infrastructure are significant milestones, but pale in comparison to the weight of the strategic outlook for bondholders.