DBSD North America seeks $25 million to $30 million DIP facility

By Caroline Salls

Pittsburgh, Oct. 13 - DBSD North America, Inc. requested court approval to obtain $25 million to $30 million in second-lien super-priority debtor-in-possession financing, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Interest on the DIP facility will be 20%, and the loan will mature on the earliest of March 31, the effective date of the company's plan of reorganization, upon conversion of DBSD's bankruptcy case and upon acceleration in connection with an event of default.

The administrative agent has not been named.

According to the motion, the company expected to emerge from bankruptcy by the end of 2009, but it was unable to do so.

DBSD said it now plans to emerge from bankruptcy in early 2010, but it needs additional financing to continue its business and complete its plan of reorganization.

The company said it expects to run out of available funds by the end of October.

A hearing is scheduled for Oct. 27.

DBSD is a subsidiary of ICO Global Communications (Holdings) Ltd., a Reston, Va., mobile satellite services company. The subsidiary filed for bankruptcy on May 15. Its Chapter 11 case number is 09-13061.

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