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Orbital Imaging Corporation (Orbimage) announced today that it has acted on its previously announced plans and filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the Eastern District of Virginia. Orbimage previously indicated that it intended to take such action in furtherance of its plans to reorganize and has been in negotiations with its bondholders, holders of its Series A Preferred Stock and Orbital Sciences Corporation concerning its restructuring since last year. "Following our extensive negotiations and with the support of our key stakeholders, as well as the dedication and loyalty of our employees and customers, the Company believes that now is the time to move forward on our previously announced plans," said Matthew O'Connell, Orbimage's Acting Chief Executive Officer. He went on to say, "This filing represents another step in Orbimage's plan to strengthen our financial position through both a consensual reduction of our debt and the implementation of our business plan following the anticipated launch of OrbView-3. "As we indicated last fall, we have been working with an informal committee representing over 50% of the Company's 11 5/8% Senior Notes as well as the holders of the Company's Series A preferred stockholders to implement a formal restructuring. The filing will facilitate the process of implementing the final restructuring plan that we expect to reach with these parties." Armand D. Mancini, Orbimage's Executive Vice President and CFO said, "we fully expect that our cash on hand will carry us through the launch of OrbView-3 and that our balance sheet, upon emerging from Chapter 11, will have a significantly reduced debt level that is more appropriate for our business." Mr. Mancini also added that "although the previous launch delays and the failure of OrbView-4 significantly impacted our revenue expectations, the Company can now focus its resources on completing the Plan of Reorganization and placing our OrbView-3 high-resolution imaging satellite into service as quickly as possible. Accomplishing both of these objectives is critical to restoring the Company to financial health." Related Links Orbimage SpaceDaily Search SpaceDaily Subscribe To SpaceDaily Express 
Orbital Restructures Orbital Imaging
Dulles - Sept. 25, 2001Orbital Sciences Corporation has agreed to support the financial restructuring of its satellite imaging affiliate, Orbital Imaging Corporation (Orbimage), with a financing package that includes both cash and non-cash contributions, the company stated today. |
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