ProtoStar looks to extend DIP facility, draw on additional funding

By Caroline Salls

Pittsburgh, March 23 - ProtoStar Ltd. requested court approval to amend its debtor-in-possession facility to extend the maturity date and allow it to draw on $2.5 million in additional financing, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said the amendment also allows it to repay $2.5 million of new money loans advanced under a previous amendment.

The maturity date will be extended to the earlier of April 30 and the effective date of a plan of reorganization.

The company will pay a $75,000 funding commitment fee.

According to the motion, a pending lien challenge has continued to be an obstacle in the company's bankruptcy case, and plan confirmation has been delayed.

However, ProtoStar said it has ongoing operational and Chapter 11 costs, including supporting discovery requests, reconciling claims and meeting financial reporting requirements.

The company has requested an April 8 hearing.

ProtoStar, a Bermuda satellite company, filed for bankruptcy on July 29, 2009. Its Chapter 11 case number is 09-12659.

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