Security contractor Constellis in talks for $1 billion debt restructuring
Last week's storming of the U.S. embassy in Baghdad. Photo by Murtadha Sudani/Anadolu Agency via Getty Images.
Constellis, a Reston, Va.-based security contractor owned by Apollo Global Management, is in talks with creditors to restructure its $1 billion of debt or enter a pre-negotiated bankruptcy, per Bloomberg.
Why it matters: Constellis is partially responsible for security at the U.S. embassy in Baghdad, which came under assault last week — possibly precipitating the U.S. decision to kill Iranian Gen. Qassem Soleimani.
Backstory: The company missed a principle payment on December 31, but entered into a forbearance agreement so it could continue operations. All of this is a far cry from early 2018, when Apollo was negotiating to sell or IPO Constellis.
Bottom line: "The company, which bought what was once Blackwater, the private-security firm founded by Erik Prince, has struggled as the U.S. scaled back operations overseas. Domestic work came with lower margins and the company has been bogged down with start-up costs on new contracts, S&P Global Ratings said in a report in November as it cut the company’s credit grades." — Bloomberg