DULLES, Va., Sept. 15 /PRNewswire/ -- Orbital Sciences Corporation (NYSE: ORB) stated today that ORBCOMM Global, L.P.'s voluntary filing for Chapter 11 reorganization is a necessary step in the overall reorganization of ORBCOMM's financial structure and business plan. Orbital reaffirmed its support for ORBCOMM, of which it owns approximately 32% of the current equity, stating that it would continue to assist in the restructuring effort and would also continue to provide technical support for the continued operation of ORBCOMM's satellite and ground network.
Orbital stated that ORBCOMM's Chapter 11 filing is intended to allow ORBCOMM the time to restructure its existing debt obligations as it seeks to attract new equity investment to fund its operating and capital requirements for the next several years. ORBCOMM has retained Donaldson, Lufkin & Jenrette Securities Corporation to act as the liaison between the company and its bondholders. Bear, Stearns & Company, Inc. is also assisting in exploring financing alternatives for ORBCOMM. In addition, as previously announced, Teleglobe Inc., which currently owns approximately 68% of ORBCOMM's equity, is providing an interim financing package that will provide ORBCOMM with short- term liquidity for the next several months, which will allow ORBCOMM to continue to operate its satellite and ground network and provide its full range of wireless data communications services to existing customers and business partners in dozens of countries around the world.
Although it cannot be sure of the timing, Orbital stated that ORBCOMM is aiming to emerge from Chapter 11 with a restructured financial and operational plan that will put the company in an improved position to achieve cash flow break-even within the next several years.
Orbital does not anticipate that ORBCOMM's Chapter 11 filing will have a material impact on Orbital's operations or overall liquidity position. However, Orbital may decide at a later date that certain non-cash adjustments should be made.
Orbital is one of the largest space technology and satellite services companies in the world, with 1999 total enterprise revenues (including revenues from unconsolidated affiliates) of approximately $915 million. The company, headquartered in Dulles, Virginia, employs over 5,000 people at major facilities in the U.S., Canada and several overseas locations. Orbital is the world's leading manufacturer of low-cost space systems, including satellites and space robotics, launch vehicles, electronics and sensors, satellite ground systems and related digital infrastructure. Its Magellan subsidiary is a pioneer in satellite-based navigation and communications products for consumer and industrial markets. Through its ORBCOMM and ORBIMAGE affiliates and ORBNAV subsidiary, Orbital is also a major operator of satellite-based networks that provide data communications, high-resolution imagery and automotive information services to customers around the world. SOURCE Orbital Sciences Corporation
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