ORBIMAGE Emerges from Chapter 11
ORBIMAGE, the Dulles, Va.-based satellite imagery provider, has emerged from Chapter 11 bankruptcy protection, the company announced last week. As part of the final reorganization plan, all existing notes and shares of capital stock of Orbital Imaging Corp. (the former name of ORBIMAGE) were cancelled. Holders of the company’s old notes and other general unsecured creditors received $50 million in new senior subordinated notes due 2008 and 6 million shares of common stock, representing approximately 99 percent of the outstanding capital stock of ORBIMAGE. Holders of certain debt obligations incurred during bankruptcy received approximately $19 million in new senior notes due 2008. Additionally, holders of Series A preferred stock received warrants to purchase up to approximately 319,000 shares of common stock.
“Our emergence from bankruptcy protection marks the final milestone in the new beginning for ORBIMAGE. Not only do we have a much stronger balance sheet, we also have a new satellite that’s performing exceptionally well, over $250 million in sales backlog, an exceptional team of experienced professionals, and solid business partnerships,” said ORBIMAGE CEO Matt O’Connell.