Res Communis

Protostar Files for Chapter 11

by P.J. Blount with the blog faculty

From Satnews Daily:

Chapter 11 Filing By ProtoStar

ProtoStar logo ProtoStar Limited has filed for bankruptcy protection, which will also include the Company’s five affiliates.

This filing occurred on Wednesday. Protostar is seeking buyers for their two satellites, all via an auction that will be supervised by the bankruptcy court. Protostar’s lenders will provide debtor-in-possession (DIP) financing, which will allow the firm to continue their operations while going through the bankruptcy process. The Bermuda-based Company was initiated in 2005, with the objective of launching and operating geostationary satellites for DTH satTV and broadband services lease by Asian providers. This case is In re: ProtoStar Satellite Systems Inc, U.S. Bankruptcy Court, District of Delaware (Delaware), No. 09-12658. There are currently 22 employees, with the Company’s Chapter 11 listed assets and liabilities ranging in value from $100 million to $500 million.