Long Beach rocket launch company to be controlled by Russian firm
Sea Launch Co., a Long Beach-based rocket launch company, said a Delaware judge on Tuesday approved a Chapter 11 bankruptcy reorganization plan that would transfer control of the company from Boeing Co. to a Russian rocket engine maker.
The company, which uses a converted oil-rig to launch rockets near the equator, filed for Chapter 11 bankruptcy protection in June 2009 after it could not pay a $52-million judgment against it in connection with a terminated launch contract. The judgment came shortly after a platform explosion in early 2007 destroyed a commercial satellite and set the company’s operations back about a year.
Under the reorganization plan, an affiliate of rocket engine maker Rocket & Space Corp. Energia, based in Moscow, is investing $155 million for a 95% stake in the company.
“It’s extremely gratifying to be close to the finish line,” said Kjell Karlsen, the president of Sea Launch.
The company was formed in 1995 by Chicago-based Boeing as an alternative to launching satellites from land. Initially, Boeing held a 40% stake, with the remaining shares held by Energia; Aker ASA, a Norwegian shipbuilder; and two Ukrainian rocket component makers.
Under the new plan, Boeing will have a 3% stake in the company with the remaining 2% owned by Aker.
Before the company can officially operate as a new entity, the U.S. State Department has to approve the transfer of export licensing agreements from Boeing to the Russian company, which is expected in September.
Despite the proposed new ownership structure, Sea Launch has said it would not abandon Southern California. Karlsen said the company planned to double its workforce to 100 employees as it ramps up for more launches next year.
Sea Launch, which counts DirecTV and satellite services provider Intelsat as customers, has no launches scheduled this year but has two on the calendar next year.
The company secured contracts last month with commercial satellite operators EchoStar Satellite Services and Asia Satellite Telecommunications Co. It did not specify a date for the launches. In addition, a company spokeswoman said Sea Launch has signed three more contracts but didn’t provide details.
