[Satellite TODAY 08-04-09] ProtoStar has reached an agreement with its principal lender groups after filing July 29 for Chapter 11 bankruptcy protection in the United States and Bermuda, the company announced Aug. 3.
     The company said it has secured financing from its incumbent lender groups that will allow it to finance the costs of its operations throughout the proceedings. ProtoStar and its principal lenders will structure a sale process of its satellites, which will be run by UBS Securities, ProtoStar’s financial advisor and capital markets advisor.
    ProtoStar has two satellites, ProtoStar 1 and 2. ProtoStar 2, built by Boeing, was handed over to ProtoStar in June after completing in-orbit tests and confirming the satellite’s readiness to enter service providing direct-to-home broadcasting and telecommunications services to the Asia-Pacific region. The operator has listed assets and liabilities between $100 million to $500 million and lists Philippine Long Distance Telephone Co. as its largest unsecured creditor.
    “This has been a challenging time,” said ProtoStar President and CEO Philip Father, in a statement. “I am optimistic that this process will be run in an organized and professional manner, and we are working toward the best possible outcome for all counterparties.”

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