More Bad News for Boeing, Citi: Sea Launch Files for Bankruptcy

Commercial satellite-launch services provider Sea Launch, which is 40% owned by 787 on time manufacturer extraordinaire, Boeing (BA), filed for bankruptcy last night in Delaware (09-12513). The Long Beach company which has used the Kazakhstan Baikonur Space Center for rocket launches in the past, has listed liabilities of over $1 billion.

What is hilarious is that just last week, the Company launched a $245 million one-year Term Loan underwritten by Citigroup (C). Is Citi doomed to have the worst luck of any investment bank for ever and ever? For what it's worth, Goldman (GS) only provides loans to soon to be bankrupt companies (ahem, Movie Gallery) if they file for chapter with at least a one month lag post refi (and long after the bank has syndicated the loan to unwitting, dimwitted credit PMs who have to generate 15% returns in 3 months or the Exit sign it is).

At least gullible investors in the recent TL issue (yielding between L+200-350) be happy that it is guaranteed by Boeing, which after its 5th 787 launch delay may be better off changing its business model to focus on making space ship launch pads.

Comments

[TeresaE:]

Making space ship launch pads would only be lucrative if they were in Russia.

That is where our money & space program will be for the next half decade.

The government is off shoring scientists and highly trained NASA employees and gifting RUSSIA billions of dollars.

Boeing might consider the former USSR for their future headquarters. After all, isn't it still common in Russia to come in over budget and long past due date?

Jun 24 09:04 AM

[nova:]

Just 20 years ago, the USA was the undisputed king of space launches. But not any more. Arianespace is well ahead of the USA. NASA is another government agency without any directions and real operational capabilities. It became another government "welfare" agency. This is the story of American hightech.

US government during Clinton and both Bush administrations severely damaged US space capabilities in time when space becomes the major militery and commercial interprises of the future.

Jun 24 11:13 AM