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Orbital Infrastructure gets approval of DIP financing, bid procedures
By Sarah Lizee
Olympia, Wash., Sept. 20 – Orbital Infrastructure Group Inc. received final approval of a $15 million debtor-in-possession facility, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.
The debtor is planning to sell its two remaining operating subsidiaries, Front Line Power Construction, LLC and Gibson Technical Services, Inc. (GTS).
Front Line and GTS each have separate primary secured creditors who are providing the DIP 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.
Bid procedures
The company also received court approval on Tuesday of bid procedures for Front Line and GTS.
As previously reported, the company negotiated stalking horse bids with the lenders for the equity interests of Front Line and GTS.
Streeterville has offered to purchase GTS for $40 million through a credit bid.
An entity formed by prepetition term loan lenders and Alter Domus has offered to purchase Front line for about $171 million through a credit bid.
Competing bids are due by 6 p.m. ET on Oct. 3, and an auction is set to take place on Oct. 4.
A sale hearing is scheduled for Oct. 5.
Houston-based Orbital Infrastructure provides engineering, design, construction and maintenance services to customers in the electric power, telecommunications and renewables operating segments. The company filed bankruptcy on Aug. 23 under Chapter 11 case number 23-90763.
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