Why Intelsat Stock Plummeted This Morning, Then Bounced Back

Shares of Intelsat (NYSE: I) have taken investors on a roller-coaster ride today.

Last night, reports began to filter out about Intelsat hiring lawyers from Kirkland & Ellis LLP to begin preparing for a bankruptcy filing. According to Bloomberg, "a person close to the company" said that unless the FCC decides to be more generous and allow Intelsat to keep more of the proceeds of the upcoming auction of its "C-band" spectrum for others to use for 5G internet, then Intelsat won't have the cash to service its debt load -- and will go bankrupt.

Intelsat stock plummeted 13.4% in early trading today as investors digested that news.

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Source Fool.com