DULLES, Va.-Orbcomm Global L.P. said it is seeking bankruptcy court approval to begin an auction process to sell the business as a going concern.
Orbcomm has been operating under Chapter 11 protection since Sept. 15 of last year, and during that time, it has continued to provide data communications services. Orbcomm indicated that the prospective investors with whom it has held meaningful discussions have expressed a strong desire to continue providing data communications services to the company’s customers.
“We believe that the best way to complete a transaction that provides funding for Orbcomm within our time requirements is to begin an auction process now,” said Scott L. Webster, Orbcomm’s chairman and chief executive officer. “We have reserved what we believe to be sufficient funds to retain our current staff and support ongoing operations, so as to continue to provide service to our customers during the auction period.”
If Orbcomm receives bankruptcy court approval for the auction, it said it plans to issue an invitation to submit bids shortly thereafter. The auction process would then take place during the rest of February, and the company would seek to obtain bankruptcy court approval of the highest and best bid in early March.
