Sea Launch gets court OK for remaining $12 million of DIP financing

By Lisa Kerner

Charlotte, N.C., March 17 - Sea Launch Co., LLC's remaining $12 million of debtor-in-possession financing from Space Launch Services, LLC was approved by the U.S. Bankruptcy Court for the District of Delaware at a hearing on Wednesday, according to an attorney close to the case.

As previously reported, while Sea Launch 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.

Sea Launch was granted interim access to the $3 million in February.

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

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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