Global Eagle Entertainment (NASDAQ:ENT) news for Friday concerning its Chapter 11 bankruptcy filing has ENT stock soaring higher.
A Global Eagle Entertainment news release reveals that the company has received approval from a U.S. Bankruptcy Court for “First Day” motions. This will allow the provider of in-flight entertainment to continue normal operations throughout the bankruptcy.
To go along with this approval, Global Eagle Entertainment is also allowed to access $30 million in debtor-in-possession funding from an investor group. There’s a total of $80 million of this funding available.
The debtor-in-possession funding comes from a collection of investors that own more than 90% of first-lien loans for Global Eagle Entertainment. This organization is seeking to purchase ENT via the bankruptcy process.
Joshua Marks, CEO of Global Eagle Entertainment, said this about the bankruptcy news.
“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. The support from the investor group is a testament to their confidence in our business, our team and our future.”
Global Eagle Entertainment points out that the bankruptcy filing doesn’t include any of its subsidiaries. Suppliers working with these entities will also continue to be paid normally. The company’s bankruptcy filing was made on Wednesday.
ENT stock was up 127.4% as of Friday afternoon but is down 83.1% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
