Orbital Imaging files for Chapter 11

New York, April 8 - Orbital Imaging Corp. made a Chapter 11 filing in the U.S. Bankruptcy Court for the Eastern District of Virginia.

The Dulles, Va. earth imaging company said that the action is in line with its previously announced plans to carry out a financial restructuring.

Negotiations have been going on with bondholders and holders of the company's series A preferred stock since last year, Orbital Imaging added.

Bondholders have been represented by an informal committee of investors owning more than 50% of Orbital Imaging's 11 5/8% senior notes.

"The filing will facilitate the process of implementing the final restructuring plan that we expect to

reach with these parties," said Matthew O'Connell, Orbital Imaging's acting chief executive officer, in a news release.

The restructuring is intended to cut the company's debt.

Cash on hand should be sufficient to launch the company's OrbView-3 satellite, the company added.

"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," said Armand D. Mancini, executive vice president and chief financial officer.

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