- Press Release
- Oct 31, 2023
Orbital issues statement on developments at Orbcomm Global, l.p.
Orbital Sciences Corporation stated today that ORBCOMM Global, L.P.’s voluntary filing for Chapter 11 reorganization is a necessary step in the overall reorganization of ORBCOMM’s
financial structure and business plan. Orbital reaffirmed its support for ORBCOMM, of which it owns approximately 32% of the current equity, stating that
it would continue to assist in the restructuring effort and would also continue
to provide technical support for the continued operation of ORBCOMM’s satellite
and ground network.
Orbital stated that ORBCOMM’s Chapter 11 filing is intended to allow ORBCOMM the
time to restructure its existing debt obligations as it seeks to attract new equity investment to fund its operating and capital requirements for the next
several years. ORBCOMM has retained Donaldson, Lufkin & Jenrette Securities Corporation to act as the liaison between the company and its bondholders. Bear,
Stearns & Company, Inc. is also assisting in exploring financing alternatives
for ORBCOMM. In addition, as previously announced, Teleglobe Inc., which currently owns approximately 68% of ORBCOMM’s equity, is providing an interim
financing package that will provide ORBCOMM with short-term liquidity for the
next several months, which will allow ORBCOMM to continue to operate its satellite and ground network and provide its full range of wireless data communications services to existing customers and business partners in dozens of
countries around the world.
Although it cannot be sure of the timing, Orbital stated that ORBCOMM is aiming
to emerge from Chapter 11 with a restructured financial and operational plan that will put the company in an improved position to achieve cash flow break-even within the next several years.
Orbital does not anticipate that ORBCOMM’s Chapter 11 filing will have a material impact on Orbital’s operations or overall liquidity position. However,
Orbital may decide at a later date that certain non-cash adjustments should be
Orbital is one of the largest space technology and satellite services companies
in the world, with 1999 total enterprise revenues (including revenues from unconsolidated affiliates) of approximately $915 million. The company, headquartered in Dulles, Virginia, employs over 5,000 people at major facilities
in the U.S., Canada and several overseas locations. Orbital is the world’s leading manufacturer of low-cost space systems, including satellites and space
robotics, launch vehicles, electronics and sensors, satellite ground systems and
related digital infrastructure. Its Magellan subsidiary is a pioneer in satellite-based navigation and communications products for consumer and industrial markets. Through its ORBCOMM and ORBIMAGE affiliates and ORBNAV subsidiary, Orbital is also a major operator of satellite-based networks that
provide data communications, high-resolution imagery and automotive information
services to customers around the world.
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