Shares of Intelsat (I) are on pace to close the day 20% lower, currently trading at $1.11, after Bloomberg’s Katherine Doherty, Sridhar Natarajan and Allison McNeely reported earlier today that the company is seeking a possible bankruptcy loan and being put under Chapter 11 court protection while it awaits billions of dollars in proceeds from a government spectrum auction. Bank partner JPMorgan Chase (JPM) is shopping a debtor-in-possession loan of about $750M to institutional investors ahead of the C-Band auction set to begin later this year, according to Bloomberg’s report. No final decision has been made and options other than a Chapter 11 bankruptcy filing are also being considered, the report added.