Seabras 1 Bermuda Ltd and its subsidiary Seabras 1 USA LLC, which are the owners of the Seabras-1 cable between New York and Sao Paulo, filed voluntary petitions for Chapter 11 restructuring.
Seabras 1 Bermuda Ltd said it is pursuing a restructuring plan with secured lenders to address its debt situation and emerge as a vibrant, healthy business. An online statement cites an “unexpectedly steep decline in wholesale capacity pricing on the US-Brazil route combined with the recent overbuild on that route remain serious challenges.”
Seabras-1 is operated by Seaborne Networks, which is an indirect shareholder of the companies and is not part of the bankruptcy filing. Seaborn Networks said its operations are not expected to be impacted by the filings and that it will continue to provide all SG&A and Operations & Engineering services as usual.
