Press Release
4iG Group and Israel Aerospace Industries form strategic partnership to restructure SpaceCom debt
4iG and Israel Aerospace Industries submit a joint offer to SpaceCom creditors
- 4iG Plc. (4iG) and Israel Aerospace Industries (IAI) jointly submitted a proposal for the comprehensive restructuring of the bond debt of SpaceCom, a Tel-Aviv Stock Exchange listed operator and developer of the AMOS satellite systems.
- The objective of this joint initiative is to ensure long-term operational continuity and financial stability of SpaceCom.
- Under the proposed debt settlement plan:
- IAI – Israel state-owned defence company – would acquire an 80% ownership stake in the company becoming its controlling shareholder.
- 4iG Plc. would retain its 20% shares and continue to act as a strategic partner in SpaceCom future operations.
- The implementation of the debt restructuring is subject to approval by bondholders, company board, regulatory authorities, and the competent Israeli court.
- Upon approval, the partnership between 4iG and IAI brings significant international prestige and professional recognition to 4iG and to the Hungarian space technology sector, positioning Hungary as an active participant in the global space and defence ecosystem.
4iG and Israel Aerospace Industries (IAI) jointly submitted a binding, bilateral proposal for the settlement of SpaceCom’s bond debt. The proposal aims to provide an ultimate and sustainable resolution to the protracted restructuring process of recent years, thereby stabilising both the company’s operations and its capital markets presence. 4iG Plc. – which has held a 20% minority stake in SpaceCom since 2021 – had previously submitted two proposals to consolidate the company’s debt. Although the latest plan had been accepted by bondholders, the required conditions for closing were not fulfilled within the prescribed deadline.
Under the new joint proposal, IAI – a state-owned enterprise of Israel – would acquire a majority 80%, while 4iG would retain
its 20% equity interest. The financial structure includes a capital injection of USD 12 million in the form of a subordinated
shareholder loan, bearing 10% annual interest and maturing in 2035. The loan will be provided by the parties “pari passu”
in proportion to their shareholding, meaning 4iG would commit USD 2.4 million.
Bondholders holding matured debt instruments would receive total compensation of approximately USD 368 million, financed
from the company’s available cash balance (USD 206 million) from the issuance of new bonds by SpaceCom (USD 150 million) and
the shareholder loan provided by IAI and 4iG, while USD 20 million would remain within the company as an operational cash
reserve. As a condition of settlement, bondholders would be required to waive all remaining claims, including default interest.
Following the transaction, SpaceCom would become a private company, jointly owned by IAI and 4iG. Through its controlling
shareholder, the company would become indirectly state-owned by the Government of Israel. This would bring substantial international
prestige and professional recognition to 4iG and the Hungarian space technology sector, enabling Hungary to become an active
contributor to the global space and defence ecosystem.
The successful completion of the transaction remains subject to governmental, regulatory, and antitrust approvals in Israel,
as well as the successful issuance of the new bonds. The parties are confident that the new ownership structure and the strong
industry backing of the investor consortium will ensure sustainable operations and long-term growth for SpaceCom. The transaction’s
successful closure would significantly strengthen the company’s financial position and its capital market perception.
22 July 2025
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Additional information
Israel Aerospace Industries (IAI)
Israel Aerospace Industries (IAI) is Israel’s leading defence and space technology company, fully owned by the state. For
over six decades, IAI has developed, manufactured and integrated cutting-edge systems for air, land, sea, and space applications.
IAI plays a critical role in Israel’s national security programmes while maintaining a strong international presence. Its
portfolio includes military and civilian UAVs, satellite communication systems, missile systems, and satellite platforms.
IAI has participated in the development of several AMOS satellites and is an active player in the global satellite communication
industry. The company employs around 15,000 people, with more than half of its revenues generated from international markets.
IAI maintains strategic partnerships across Europe, North America, and Asia. Financially robust, the company is independently
capable of financing large-scale investments and transformation programmes.
4iG Plc.
4iG Plc. is a Hungarian majority-owned company based in Budapest. It is a leading telecommunication, IT, aerospace and defence
group in Hungary and the Western Balkans, and a key player in the knowledge-based digital economy. The Budapest Stock Exchange-listed
company has a fresh and innovative approach, and its position as Hungary’s leading IT systems integrator makes it a leading
business service provider in the region’s digital transformation. 4iG’s dynamic expansion strategy has resulted in the company
becoming a dominant player in the Hungarian and Western Balkan telecom markets. The Group is continuously expanding its services,
expertise, and portfolio to meet the changing needs and demands of the telecom and IT markets. 4iG Group is a substantial
employer, with a workforce of over 8,000 people. www.4iG.hu
For more information, please contact:
Péter ELKÁN
Group Corporate Affairs and Communications Director
sajto (@) 4ig.hu
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