Chadbourne & Parke LLP Represents ORBCOMM In $26 Million Equity Financing;
Completes Turnaround of 1990s Tech High Flyer That Hit Rough Times
Chadbourne & Parke LLP, helping put the finishing touches on the turnaround of global satellite telecommunications company ORBCOMM, represented the Dulles, Va.-based company in a $26 million equity financing involving SES Global S.A., and other investors.
ORBCOMM, once a high flyer in the 1990s, hit bad times and filed for Chapter 11 in 2000. With Chadbourne’s help, new leadership purchased the company in April 2001 during the bankruptcy proceedings for less than one cent on the dollar.
The financing, announced Feb. 24, came from SES, the world’s largest provider of broadband satellite services; OHB Technology A.G. (OHB), a leading European space technology company; Ridgewood Capital and Northwood Ventures LLC, leading investment firms; and several existing investors including senior management.
The proceeds of the financing will be used to support ORBCOMM’s successful growth strategy worldwide. ORBCOMM currently provides two-way narrowband data communications services to a diverse customer base including General Electric, Caterpillar Inc., Volvo Trucks, XATA and AirIQ. These companies rely on ORBCOMM’s unique low-earth orbit satellite network to track, monitor and control mobile and fixed assets anywhere in the world.
Chadbourne attorneys working on the deal were partners Alejandro San Miguel and Barry Dinaburg and associate Brad Franco. The firm is outside general counsel to ORBCOMM, helping them in the bankruptcy, and representing the company since then as it has strived to complete its restructuring worldwide. Chadbourne’s work on the financing completed the resurgence of ORBCOMM.
Under the terms of the agreement, SES will join the ORBCOMM board of directors, will assist ORBCOMM in deploying its next generation satellites and will develop new applications.