Orbital Infrastructure Group makes Chapter 11 bankruptcy filing

By Sarah Lizee

Olympia, Wash., Aug. 24 – Orbital Infrastructure Group Inc. and some of its subsidiaries filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas on Wednesday, according to a press release.

The company said that over the last several months, the debtors, with the support of prepetition secured parties, undertook a restructuring process that included several sales, wind-downs of various operating subsidiaries and an exhaustive marketing process for their two remaining operating subsidiaries, Front Line Power Construction, LLC and Gibson Technical Services, Inc. (GTS).

The debtors started the Chapter 11 cases to stabilize liquidity, address debt defaults and near-term debt maturities, and, in the absence of any feasible out-of-court solutions, facilitate a value-maximizing process to sell Front Line and GTS.

Front Line and GTS each have separate primary secured creditors who are providing the company with $15 million in debtor-in-possession financing. The financing consists of two $7.5 million DIP term credit facilities.

Alter Domus (US) LLC is the DIP agent for one of the facilities, and Streeterville Capital, LLC is the lender on the other.

Both loans will bear interest at 10% per annum.

The company said it is negotiating stalking horse bids with the lenders for the equity interests of Front Line and GTS.

In its petition, Orbital listed 200 to 999 creditors, $24.19 million in assets and $225.85 million in debt.

The company is represented by Haynes and Boone, LLP. Moelis & Co. LLC is its investment banker.

Houston-based Orbital Infrastructure provides engineering, design, construction and maintenance services to customers in the electric power, telecommunications and renewables operating segments. The Chapter 11 case number is 23-90763.

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