U.S. Bankruptcy Court Approves Sea Launch Reorganization Plan
[Satellite TODAY 07-28-10] The U.S. Bankruptcy Court in Delaware approved Sea Launch’s reorganization plan to prepare for its emergence from Chapter 11 bankruptcy protection in the third quarter, the company announced July 27.
Sea Launch filed the plan May 10 as part of a 13-month restructuring process that was initiated when the company filed for bankruptcy in June 2009. The reorganization plan will become effective following completion of a U.S. regulatory review.
“Court confirmation of our Plan of Reorganization is the next step in the reorganization process for Sea Launch and brings us closer to re-entering the market as a strong and competitive commercial launch service provider. We will continue toward emergence with a solid financial structure and a healthy manifest of future launches,” Sea Launch President Kjell Karlsen said in a statement.
Details of Sea Launch’s reorganization plan have yet to be revealed. In a disclosure statement filed with the bankruptcy court in May, Sea Launch said it intends to repay its $30 million debtor-in-possession loans in full, while current trade vendor’s unsecured claims, such as those from Aker and Boeing, would be repaid at 17.5 percent on the dollar.
The company has remained active throughout the bankruptcy process. Earlier in July, Sea Launch won multiple launch contracts with operators EchoStar and AsiaSat. A $25 million credit line from Space Launch Services has allowed Sea Launch to continue operating through reorganization.
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