Sea Launch Files Chapter 11 to Address Financial Challenges - June 22, 2009

What was it I have heard, to develop space we need to have cheaper launch facilities. We need competition to bring down the cost of launching satellites.

Then there was/is Sea Launch, an international business, that could launch from the ocean cheaper than the big guys.
http://www.sea-launch.com/

Not all has gone smoothly. A bump in the road was a boom on the launch pad out there in the ocean back in January 2007.
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Sea Launch Experiences Anomaly During NSS-8 Launch
http://www.spaceref.com/news/viewpr.html?pid=21766
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The Sea Launch satellite launch schedules were disrupted and owners of satellites found other launch services for time critical launches.

Hughes Network Systems LLC wanted to collect a $52 million arbitration award made in connection with a canceled launch contract following the failed launching in 2007.
http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=BA:US&sid=aSApkl3mFF18

All of which has led to Sea Launch filing for Chapter 11 bankruptcy.
- LRK -

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http://www.boeing.com/special/sea-launch/news_releases/2009/nr_090622.html
Sea Launch Files Chapter 11 to Address Financial Challenges
LONG BEACH, Calif., June 22, 2009 – Sea Launch Company L.L.C. and Sea Launch Limited Partnership and subsidiaries (“Sea Launch” or “Company”), a leading provider of launch services to the commercial satellite industry, has filed voluntary petitions to reorganize under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware in Wilmington.

The members of Sea Launch have unanimously determined that Chapter 11 reorganization is in the best interests of the Company, its customers, shareholders, employees and other related parties.

Sea Launch intends to continue to maintain all normal business operations after the filing for reorganization. Subject to court approval, Sea Launch will initially use its cash balance to meet
operational requirements during the reorganization process and is addressing Debtor in Possession financing, if necessary.

“We want to assure our customers, employees, suppliers and partners that Sea Launch intends to continue to operate after the filing,” said Kjell Karlsen, president and general manager of Sea Launch. “Chapter 11 reorganization provides an opportunity for us to continue operations and focus on building our future plans. We are grateful for the continued support of our customers and partners while we focus on reorganizing for the future.”

In the court filing, Sea Launch listed assets of between $100 million and $500 million against liabilities of between $500 million and $1 billion. Sea Launch’s restructuring counsel is Alston & Bird, LLP.

Contact: Paula Korn, 562.499.4729 or 562.254.5684 (cell),
paula.korn@sea-launch.com

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Sea Launch plans to continue operations but it won't be easy.
When you have to take time to regroup others can take advantage and pick up the slack.
- LRK -

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http://online.wsj.com/article/SB124585981636148193.html
Sea Launch Bankruptcy Gives Advantage to European Rivals
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The filing underscores the financial weakness of the commercial satellite launch business in the U.S. The partnership's woes are in stark contrast to the expanding, government-supported launch operations aggressively marketed by Russia and the European launch consortium Arianespace.

Both Arianespace and Russian-supported International Launch Services benefit from billions of dollars in public investments because they also are part of strategic national-security priorities for Moscow and the European Union. Over the weekend, for example, French President
Nicolas Sarkozy announced a drive to develop a replacement for Europe's premier satellite launcher, the Ariane 5 rocket. Such plans are part of broader European ambitions to promote unmanned and eventually manned space exploration.
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Hmmmm, haven't heard of any bailout funds being offered. What is a billion or two among friends, yes?

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http://spaceflightnow.com/news/n0906/24sealaunch/
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In the filing, the company said it is unable to repay debt or secure new financing, making bankruptcy reorganization the "best avenue" to keep the company afloat.

Officials say they intend to continue normal business operations, including the pursuit of new launch contracts to bring in new revenue.

Whether satellite operators will sign with a company in bankruptcy remains to be seen, but Sea Launch leaders attempted to ease their concerns.

"We want to assure our customers, employees, suppliers and partners that Sea Launch intends to continue to operate after the filing," said Kjell Karlsen, president and general manager of Sea Launch. "Chapter 11 reorganization provides an opportunity for us to continue operations and focus on building our future plans. We are grateful for the continued support of our customers and partners while we focus on reorganizing for the future."

Two more launches had been planned for this year. Sea Launch has contracts for 10 launches through 2012, officials said.

Sea Launch reported assets between $100 million and $500 million and estimated debt of almost $2 billion.

The company will explore the potential sale of one or more of its business units during the bankruptcy proceedings, officials said.
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Are there any CEO's who got bailout bonuses who would like to give a donation to help a multinational corporation lower the price of getting to space?
- LRK -

Why Sea Launch?
http://www.sea-launch.com/why_sea_launch.htm

What next? Ares 1-X launch.
- LRK -

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http://www.spacetoday.net/Summary/4720
Ares 1-X launch date moved up
Posted: Wed, Sep 23, 2009, 7:05 AM ET (1105 GMT)
NASA announced Tuesday that it was moving up next month's launch of a prototype of the Ares 1 launch vehicle by several days. The Ares 1-X launch, previously planned for October 31, is now scheduled for October 27, the agency announced; a backup date of October 28 is also planned. Officials said they moved up the launch because previous plans included buffer time they did not need, and that the range was available on those earlier dates. The Ares 1-X is a full-scale version of the Ares 1, but uses only a four-segment solid rocket motor in its first stage, versus the five-segment planned for the Ares 1; the second stage of the Ares 1-X is a dummy stage with no propulsion. The future of the Ares 1 is in question after a review of human spaceflight plans performed this summer by an independent committee:
several of the options in that committee's summary report did not
include the Ares 1.
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http://www.nasa.gov/home/hqnews/2009/sep/HQ_09-219_Ares_I-X_Launch_Date.html
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Will we see Space-X Falcon-9 launch November 29,2009.
- LRK -

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http://spaceflightnow.com/news/n0909/24falcon/
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But according to an Air Force document first made public by the Orlando Sentinel, SpaceX has requested a launch date of Nov. 29 on the Air Force's Eastern Range. The range oversees launch operations and a network of required communications and tracking sites stretching from the U.S. East Coast across the Atlantic Ocean.

The range document lists a launch window on Nov. 29 between 1600 GMT and 2000 GMT (11 a.m. and 3 p.m. EST).

Musk said not to read too much into that date.

"It is possible, but unlikely that we would be able to launch on Nov 29," Musk said in an email response to questions.
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Thanks for looking up with me.

Larry Kellogg

Web Site: http://lkellogg.vttoth.com/LarryRussellKellogg/
BlogSpot: http://kelloggserialreports.blogspot.com/
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Twitter: http://twitter.com/lrkellogg
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WHAT THE MIND CAN CONCEIVE, AND BELIEVE, IT WILL ACHIEVE - LRK

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