California Rocket Company's Plan Approved by Court
Sea Launch Co.'s restructuring plan will now face regulatory review.
After filing bankruptcy, a California rocket company's restructuring plan was approved by a court in Delaware.
Sea Launch Co., which is based in Long Beach, said the U.S. Bankruptcy Court in the state approved the plan, which was filed on May 10 as the company plans to emerge from Chapter 11 bankruptcy. The restructuring process took 13 months, and will take effect once it gets through regulatory review.
"Court confirmation of our plan of reorganization is the next step in the reorganization process for Sea Launch and brings us closer to re-entering the market as a strong and competitive commercial launch service provider," said Sea Launch president and general manager Kjell Karlsen.
According to a report from the Los Angeles Times, control of the company would be moved from Boeing Co. to a Russian-based rocket engine manufacturer.
All types of bankruptcy have grown during the recession in California, whether the filings are for individuals or businesses. Even some governments have been forced to cut back in order to avoid filing.