Satellite : Boeing's satellite launch subsidiary files for Chapter 11

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Boeing's satellite launch subsidiary files for Chapter 11



Sea Launch Co. LLC, which provides ocean-based launch services to the commercial satellite industry, has filed for Chapter 11 bankruptcy protection.
The company says its filing is voluntary and that it will reorganize under the Chapter 11 bankruptcy code.

The company says that its members "have unanimously determined that Chapter 11 reorganization is in the best interests of the company, its customers, shareholders, employees and other related parties."
The filing is subject to court approval and should not change business operations, according to Sea Launch.
"We want to assure our customers, employees, suppliers and partners that Sea Launch intends to continue to operate after the filing," said Kjell Karlsen, president and general manager of Sea Launch, said in a statement. "Chapter 11 reorganization provides an opportunity for us to continue operations and focus on building our future plans. We are grateful for the continued support of our customers and partners while we focus on reorganizing for the future."
Sea Launch told the court that its assets are valued between $100 million and $500 million, but that its liabilities are between $500 million and $1 billion. The company hired Alston & Bird LLP to handle the restructuring.
Long Beach, Calif.-based Sea Launch says its "international partnership of American, Russian, Ukrainian and Norwegian businesses." It was founded in April 1995 and had its first launch in March 1999.
Sea Launch has a home port in Long Beach, Calif., and also performs land launches in Kazakhstan.
It is owned by Boeing (40 percent); RSC-Energia of Moscow, Russia (25 percent); Aker ASA of Oslo, Norway (20 percent); and SDO Yuzhnoye/PO Yuzhmash of Dnepropetrovsk, Ukraine (15 percent).
Its debt financing was arranged by Chase Manhattan Bank in New York.