Energia
Overseas
Limited
Assumes
DIP
Financing
for
Sea
Launch
May
4,
2010
Sea
Launch
has
accepted
the
terms
of
agreement
for
debtor-in-possession
(DIP)
financing
from
Energia
Overseas
Limited
(“EOL”).
As a
result
of
the
court-approved
agreement,
EOL
will
replace
Sea
Launch’s
existing
DIP
lender,
Space
Launch
Services
(SLS).
The
new
DIP
financing
agreement
with
EOL,
which
received
interim
approval
from
the
U.S.
Bankruptcy
Court
in Delaware on April 27,
provides
additional
funding
to
Sea
Launch,
totaling
$30
million.
Part
of
the
proceeds
of
this
facility
will
be
used
to
repay
all
outstanding
SLS
DIP
loans
to
date,
amounting
to
approximately
$19
million.
The
remaining
balance
of
this
facility
will
be
used
to
fund
ongoing
operations
at
Sea
Launch
through
confirmation
of
its
Plan
of
Reorganization.
The
new
arrangement
is
also
expected
to
position
Sea
Launch
for
exit
financing,
as
the
company
prepares
for
its
successful
emergence
from
the
Chapter
11
bankruptcy
proceedings.
The
DIP
financing
transaction
closed
on
April
30.
Sea
Launch
was
assisted
in
the
transaction
by
Jefferies
&
Company,
Alston
&
Bird
LLP
and
Chris
Picone
of
Buccino
&
Associates,
Inc.
EOL
was
advised
by
Salans
LLP
and
Avicon
(UK).
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