In November 2006, ProtoStar Ltd., a Bermuda-based satellite operator with principal U.S. operations in San Francisco, secured $210 million in financing to purchase and launch its first geostationary satellite. This funding aimed to establish a three-satellite constellation serving the rapidly growing and underserved Asian direct-to-home (DTH) satellite television market. The financing comprised $160 million in senior secured convertible notes and a $50 million equity contribution from various venture capital and private equity funds. The proceeds were allocated to acquire and launch ProtoStar I, with plans for completion and launch in early 2008. ([spacedaily.com](

ProtoStar I Satellite Acquisition and Launch

ProtoStar I was initially built by Space Systems/Loral (SS/L) as ChinaSat 8, intended for launch in April 1999. However, due to export restrictions under the International Traffic in Arms Regulations (ITAR), the satellite was not launched and remained in storage. In 2006, ProtoStar acquired the satellite and contracted SS/L to modify it for their specific requirements. The satellite was renamed ProtoStar I and was launched aboard an Ariane 5 ECA rocket on July 7, 2008. Post-launch maneuvers successfully positioned ProtoStar I at 98.5 degrees East Longitude, providing coverage over South Asia, Southeast Asia, and Indochina. ([en.wikipedia.org](

Financial Challenges and Bankruptcy Filing

Despite the initial success, ProtoStar faced significant financial difficulties. In July 2009, the company filed for Chapter 11 bankruptcy protection in the United States District Court for the District of Delaware. The bankruptcy was attributed to defaults on loan agreements and other financial challenges. Following the bankruptcy filing, ProtoStar sought to auction its satellites to satisfy outstanding liabilities. ([en.wikipedia.org](

Sale of ProtoStar I to Intelsat

In October 2009, the U.S. Bankruptcy Court scheduled an auction for ProtoStar I, which was subsequently won by Intelsat Corp. with a bid of $210 million, matching the original financing amount. The satellite was renamed Intelsat 25 and integrated into Intelsat's global fleet, serving the African market at the 31.5 degrees West orbital location. This acquisition was part of Intelsat's strategy to expand its service offerings and enhance its network resilience. ([satellitetoday.com](

Sale of ProtoStar II to SES

ProtoStar II, the second satellite in the planned constellation, was launched in May 2009. Following ProtoStar's bankruptcy, the company sought to sell ProtoStar II to satisfy its financial obligations. In December 2009, SES SA, a global satellite operator, agreed to purchase ProtoStar II for $185 million. However, the U.S. Bankruptcy Court rejected the proposed agreement, leading to further legal proceedings. Eventually, ProtoStar II was sold to SES SA, contributing to the company's efforts to resolve its financial challenges. ([satellitetoday.com](

Conclusion

ProtoStar Ltd.'s ambitious plan to establish a satellite constellation for the Asian DTH television market was significantly impacted by financial difficulties, leading to bankruptcy and the sale of its satellites. The acquisition of ProtoStar I by Intelsat and ProtoStar II by SES SA highlights the competitive nature of the satellite communications industry and the challenges faced by companies in managing large-scale infrastructure projects. These events underscore the importance of financial stability and strategic planning in the satellite industry.

Sources

  • Space Daily Editorial Team — ProtoStar Closes 210 Million Dollar Satellite Financing Deal —
  • Staff Writer — Protostar Closes On $210 Million Satellite Financing —
  • Staff Writer — Intelsat Wins ProtoStar 1 Auction for $210 Million —
  • Staff Writer — Intelsat Wins ProtoStar 1 Auction for $210 Million —
  • Jonathan Kent — Intelsat wins $210m Protostar satellite bid —