SUMMARY: ProtoStar Ltd. and its affiliates filed a proposed Joint Chapter 11 Plan and Disclosure Statement with the Delaware bankruptcy court on September 30th. The companies, which filed for bankruptcy protection on July 29, 2009, were formed in 2005 to "acquire, modify, launch and operate high-power geostationary (i.e., fixed with respect to a given point on Earth) communication satellites optimized for direct-to-home satellite television and broadband internet access across the Asia-Pacific region." After their founding, the companies raised almost $500 million in debt and equity financing and launched two satellites.

The companies sought approval of procedures to separately auction the assets related to each of the satellites on August 3, 2009. According to the proposed Disclosure Statement filed yesterday, ProtoStar anticipates all conditions to the closing of the sales (other than regulatory approvals) being met or waived by November 1, 2009.

The proposed Plan is premised upon the closing of the two sales and the creation of multiple liquidating trusts to distribute the proceeds of the sales and the liquidation of any remaining assets to secured and unsecured creditors. The proposed Disclosure Statement discloses that all pre-petition claimholders will be impaired under the Plan, other than holders of priority non-tax claims. The draft of the Disclosure Statement filed with the court does not presently disclose the likely percentage recoveries for other classes of claims.

This pleading provided by netDockets, the Precedent Research System for Corporate Bankruptcy. With over 1.4 million documents filed in over 700 of the largest corporate chapter 11 bankruptcy cases, all professionally-coded to be quickly and easily searchable, netDockets allows you to find not just more precedent, but the best, most relevant precedent. Learn more and sign up for a free trial account by visiting www.netdockets.com today.

DOCUMENT INFO

RELATED DOCUMENTS BY RANDALL REESE

• Pleadings:
  Joint Chapter 11 Plan of ProtoStar Ltd. and its Affiliated Debtors and Debtors-in-Possession