After reaching agreement with its principal lender groups, ProtoStar Ltd. and certain of its affiliates (collectively, "ProtoStar"), a satellite network operator, announced that they have filed for relief under Chapter 11 of the United States Bankruptcy Code in the United States District Court for the District of Delaware. Certain of the ProtoStar entities have also filed proceedings in Bermuda.
ProtoStar has secured financing from its incumbent lender groups that will allow it to finance the costs of its operations, maintain business relationships with vendors, suppliers and customers, pay employees, satisfy other working capital and operational needs and preserve the value of its assets.
ProtoStar will continue its business efforts to provide capacity to its existing and prospective customer base during this time.
"This has been a challenging time, and the company has worked diligently to satisfy its obligations to its key constituents," said Philip Father, President and CEO of ProtoStar Ltd. "I am optimistic that this process will be run in an organized and professional manner, and we are working toward the best possible outcome for all counterparties."
Furthermore, ProtoStar has worked with its principal lenders to structure a sale process that the Company believes is the best way to maximize the value of its assets under the current circumstances. ProtoStar will market its satellites in an orderly sale process being run by UBS Securities LLC, its exclusive financial advisor and capital markets advisor.
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