Sea Launch has announced that it will receive a second tranche of US$12m in debtor-in-possession (DIP) financing from Space Launch Services (SLS) that will allow it to continue operating through its current reorganisation process.
The launch company…
Sea Launch has announced that it will receive a second tranche of US$12m in debtor-in-possession (DIP) financing from Space Launch Services (SLS) that will allow it to continue operating through its current reorganisation process.
The launch company filed for Chapter 11 bankruptcy protection in June last year. It is working with Space Launch Services to build a foundation from which it can procure exit financing and leave Chapter 11.
The second tranche of DIP financing follows on from US$12.5m it received from Space Launch Services in December last year. At that time, the US Bankruptcy Court in Delaware gave Sea Launch approval to seek a total of US$25m in DIP financing. The company expects the court to give final approval to the second tranche at a hearing on March 17.
Sea Launch expects to submit a Plan of Reorganization to the bankruptcy court in the near future, as a step toward emerging from Chapter 11 status in the second quarter of 2010.
“Receipt of our second tranche of DIP financing represents an indication not only of the progress we’re making toward realizing our exit strategy, but also our strong relationship with SLS and their commitment to Sea Launch, for the purpose of sustaining reliable commercial access to space,” said Kjell Karlsen, president and general manager of Sea Launch Company. “All of the elements in this process are coming together in a timely manner. Our customers are also participating in this process, with their discussions for scheduling our launch services.”Space Launch Services is a vehicle through which Excalibur Almaz and PlanetSpace are establishing a presence in Sea Launch. The two companies are working towards raising further financing that will allow Sea Launch to exit Chapter 11 bankruptcy protection.