Sea Launch gets court approval to access $3 million in DIP financing

By Lisa Kerner

Charlotte, N.C., Feb. 24 - Sea Launch Co., LLC was granted interim access to $3 million of the debtor-in-possession financing from Space Launch Services, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

A final hearing on is scheduled for March 17.

While Sea Launch previously received court approval to borrow up to $25 million from Space Launch under its first DIP loan motion, the lender would only commit to provide $12.5 million of that financing.

Space Launch later agreed to provide an additional $12 million of DIP financing, with $3 million of the additional financing available on an interim basis.

The new financing would be provided on substantially the same terms as the first loan.

As previously reported, maturity on the original DIP loan was scheduled to be the earliest of six months after the closing date, subject to an optional six-month extension, the effective date of the company's plan of reorganization, the closing of a sale of Sea Launch's assets and upon conversion or dismissal of the bankruptcy case.

Interest was set at Libor plus 300 basis points, and would be Libor plus 400 bps during the optional extension period.

Sea Launch, a Long Beach, Calif., heavy-lift satellite commercial launch service provider, filed for bankruptcy on June 22, 2009. Its Chapter 11 case number is 09-12153.

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