Orbital Imaging (ORBIMAGE) has signed a non-binding agreement with its unsecured creditors and its parent, Orbital Sciences [NYSE: ORB], that will allow it to emerge from Chapter 11 bankruptcy protection. Under the proposed settlement, ORBIMAGE would end its pending litigation with Orbital in exchange for additional working capital and other consideration to be provided by Orbital.

The agreement “will allow the parties to focus their efforts on successfully launching ORBIMAGE’s high-resolution imaging satellite, OrbView-3, as soon as possible,” stated Matthew O’Connell, the company’s CEO. OrbView-3 is scheduled for launch in late April 2003. ORBIMAGE expects to obtain formal approval of the settlement agreement from a U.S. bankruptcy court by mid-February.