Sun sets on satellite operator ProtoStar

ProtoStar, a company that leases satellite usage to broadband providers in Asia, has filed for bankruptcy and is moving quickly to sell off its remaining satellites, reports VentureWire. The San Francisco-based company fell upon hard times when it lost two customers to the economic downturn, putting one of its satellites out of commission.

ProtoStar still has a sizable amount of debt, but its creditors have begrudgingly agreed to keep it afloat until it sells off its remaining satellites. To speed the process, the company has appealed to the U.S. Bankruptcy court to borrow $16 million more from lenders including Wells Fargo to finalize asset sales. It says bankruptcy proceedings have been complicated by its many overseas clients and lenders who are not familiar with U.S. policy.

ProtoStar raised $182 million in equity from New Enterprise Associates, Redshift Ventures and VantagePoint Venture Partners. Today, it has $528 million in assets and $463 million in debt to its name.

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