Orbcomm Seeks Protection From Creditors

After having future financing cut off by both its parent companies, Orbcomm Global and seven of its subsidiaries filed for protection from its creditors on Friday.

One of those subsidiaries is Vantage Tracking Solutions, which sells truck trailer tracking services to trucking companies.

The Dulles, Va.,-based firm filed for Chapter 11 reorganization relief in United States Bankruptcy Court in Delaware after it was unable to make $12 million in interest payments to bondholders.

Orbcomm is owned by Montreal-based Teleglobe Inc. and Orbital Sciences Corp. of Herndon Va. Orbital cut off fund-ing to Orbcomm last year. Teleglobe cut off funding in August after a $17 million cash infusion for interim debt financing. That money will keep Orbcomm operating for the next few months, the company said in a press release.

Orbcomm offers communications and equipment location products using a network of low-earth-orbiting satellites. Within the last several months, Orbcomm has laid off staff, and changed its business approach to save money. But the network of satellites is still operating, and there has been no interruption of service, Chairman and Chief Executive Officer Scott L. Webster told Transport Topics.

Webster added that he was confident that several new equity investors would come forward within the next several months and that the company would "come back more compettitive and stronger financially."