Sea Launch Receives Court Approval for Additional Financing

March 18, 2010

Sea Launch received final approval on March 17 from the U.S. Bankruptcy Court in Delaware on its motion to secure a second tranche of debtor-in-possession (DIP) financing in the amount of $12 million from Space Launch Services, LLC (SLS).  SLS also provided the first tranche of DIP financing in the amount of $12.5 million to Sea Launch, pursuant to an earlier court order dated December 3, 2009.

Sea Launch, a leading provider of launch services to the commercial satellite industry, received interim approval from the court earlier this month for this second tranche of the DIP credit facility, which is providing working capital for continued Sea Launch operations while the company proceeds through its Chapter 11 reorganization. Sea Launch is planning to submit its Plan of Reorganization to the court shortly, as a step toward emerging from Chapter 11 status.

The company is also completing a comprehensive plan for a revised and revitalized supply chain management structure with its partner organizations to assure timely and cost-effective hardware deliveries and related infrastructure support. This element is an essential factor in the company’s emergence and success going forward. Sea Launch is also engaged in discussions with interested investor groups to secure exit financing intended to provide a strong foundation for transitioning from bankruptcy to a healthy and reliable launch services provider.