A U.S. bankruptcy court in New York has given communications satellite company Loral Skynet the go-ahead to seek creditor approval of its reorganization plan. The company is hoping to get out of bankruptcy by early August.
Effectively the move is pro forma, since the majority of creditors have already approved the plan, but it puts the reorganization on the clock toward a court hearing on approval.
Creditors will get to vote on the plan June 7, with a court hearing on the reorganization scheduled for July 13.
If the court approves, the company expects to be able to emerge from bankruptcy about two weeks after that with its Loral Skynet and Space Systems units intact.
Loral filed for chapter 11 in July 2003 and sold its North American business--five satellites--to Intelsat in March 2004 for something just north of $1 billion. That business included big-time clients CBS and Fox.
The company still has four satellites, two in Asia that service HBO Asia, Sony Entertainment, and Disney, among others; one in Brazil that supplies Internet-to-aircraft service; and one that reaches to Iraq and has been used by "just about every news organization," according to a Loral spokesman.