Energia makes Sea Launch move
The Russian manufacturer Energia has replaced Space Launch Services as lender for Sea Launch’s debtor-in-possession (DIP) financing, as the company moves towards an exit of chapter 11 bankruptcy protection.
The financing is being carried out through…
The Russian manufacturer Energia has replaced Space Launch Services as lender for Sea Launch’s debtor-in-possession (DIP) financing, as the company moves towards an exit of chapter 11 bankruptcy protection.
The financing is being carried out through Energia Overseas Limited, which received interim approval from the Delaware Bankruptcy Court on April 27.
Energia will provide US$30m DIP financing to Sea Launch, an extension of the arrangement Sea Launch has in place with Space Launch Services.
US$19m of this sum will go towards repaying the DIP loans Sea Launch took out from SLS. The remaining balance will be used to fund ongoing operations at Sea Launch until it completes its reorganisation.
Sea Launch stated that the new arrangement with Energia positions it closer to arranging exit financing from chapter 11.
Jefferies advised Sea Launch on the new financing, as it has done since the company entered chapter 11 in June 2009. On the legal side, Sea Launch was advised by Alston & Bird LLP and Chris Picone of Buccino & Associates.
Energia was advised by Salans LLP and the UK aerospace consultant Avicon.
The switch in DIP providers means that Energia has finally shown its hand. It will now move towards acquiring Sea Launch once exit financing is completed, as reported by SatelliteFinance in April.
Space Launch Services, an investment vehicle on behalf of the US-Russian human flight provider Excalibur Almaz, has acted as a stalking horse for Energia, allowing the manufacturer time to form a fully-developed plan for Sea Launch.
