Global Eagle Entertainment (ENT) Receives Court Approval for "First Day" Motions to Support Business Operations

Global Eagle Entertainment Inc. (Nasdaq: ENT) (“Global Eagle” or the “Company”), a leading provider of media, content, connectivity and data analytics to mobility end-markets across air, sea and land, today announced that it has received interim approvals from the U.S. Bankruptcy Court for the District of Delaware for the “First Day” motions related to the Company’s voluntary Chapter 11 petitions filed on July 22, 2020. These approvals will help ensure that the Company’s day-to-day operations continue without interruption during the court-supervised process. As previously announced, the Company intends to use this process to facilitate the proposed sale of the business to an investor group comprising approximately 90% of Global Eagle’s first-lien term loan holders. This sale is subject to Court approval pursuant to Section 363 of the U.S. Bankruptcy Code and other conditions.

“We appreciate the Court’s swift approval of our First Day motions, which will enable us to continue operating and serving customers in the ordinary course as we work to implement the sale of the business,” said Joshua Marks, Chief Executive Officer of Global Eagle. “The support from the investor group is a testament to their confidence in our business, our team and our future. As we move through this process, we remain focused on supporting our customers through the challenging COVID-19 environment and helping them plan for the recovery and beyond. I would also like to thank our employees for their continued dedication to our company, and our customers, vendors and suppliers for their continued partnership.”

Among other approvals, the Court granted interim approval for Global Eagle to access $30 million of the $80 million in debtor-in-possession (“DIP”) financing the Company obtained from the investor group. This new financing, together with cash on hand and cash generated from ongoing operations, is expected to provide ample liquidity to support Global Eagle’s operations during the sale process. In addition, the Court authorized the Company to continue payment of employee wages, salaries and benefits, and to pay vendors, suppliers and other partners to its affected U.S. subsidiaries in full under normal terms for goods and services provided on or after the filing date of July 22, 2020.

Global Eagle’s non-U.S. subsidiaries are not included in the Chapter 11 proceedings, and suppliers to those entities will continue to be paid in the ordinary course, regardless of when goods or services were delivered.

Additional information regarding Global Eagle’s restructuring and sale process is available at www.ConnectWithGlobalEagle.com. Court filings and other information related to the proceedings are available on a separate website administrated by the Company’s claims agent, Prime Clerk, at https://cases.primeclerk.com/GEE, by calling Prime Clerk toll-free at 877-930-4318 (or 347-897-4054 for calls originating outside of the U.S.) or by sending an email to [email protected].

Latham & Watkins LLP is serving as the Company’s legal counsel. Greenhill & Co., Inc. is serving as the Company’s financial advisor and Alvarez & Marsal is serving as the Company’s restructuring advisor.

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