Orbital receives conditional approval of disclosure statement

By Sarah Lizee

Olympia, Wash., Oct. 19 – Orbital Infrastructure Group Inc. received conditional approval of the disclosure statement for its Chapter 11 plan of liquidation on Thursday, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The combined hearing on final approval of the disclosure statement and confirmation of the plan is scheduled for Nov. 28.

As previously reported, the company received approval from the court to sell its two remaining operating subsidiaries, Front Line Power Construction, LLC and Gibson Technical Services, Inc. (GTS), to lenders of the subsidiaries.

Lender Streeterville Capital, LLC offered to purchase GTS for $40 million through a credit bid, and an entity formed by prepetition term loan lenders and Alter Domus (US) LLC offered to purchase Front line for about $171 million through a credit bid.

The company said the transactions will leave the debtors with little, if any, non-monetary assets other than claims and causes of action. As such, the debtors are using their limited remaining funding to continue winding down the estates, Orbital said.

The plan provides for a liquidation trust to administer and liquidate all remaining property of the debtors, resolve outstanding claims and interests, wind down the estates, and hopefully make distributions to general unsecured claimholders, the company said.

Other secured claims and other priority claims are unimpaired.

Holders of general unsecured claims are expected to receive a recovery of 6% to 8.3%. Holders will receive their pro rata share of beneficial interests in the liquidation trust, after the liquidation trustee pays in full all liquidating trust operating expenses.

Holders of subordinated claims, intercompany claims, intercompany interests and interests in Orbital are not expected to receive anything under the plan.

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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