Protostar puts back bankruptcy auction
Bermuda-based ProtoStar Ltd., a provider of digital television and broadband service to Asia, which has filed for bankruptcy protection, moved back the auction schedule to determine who'll pay the most to fund its proposed Chapter 11 plan.
Previously, the auction was to be October 14. Now, it's October 29. Bids are due October 23. The hearing for approval of the sale is to take place November 4.
The hearing for approval of the disclosure statement explaining the Chapter 11 plan is set for October 29.
The disclosure statement is somewhat vague about the treatment of creditors' claims since the auction hasn't occurred.
At the auction, secured creditors will be entitled to bid their liens rather than cash.
The plan allows the two principal holders of secured debt to divide up the proceeds according to their contractual rights. The creditors include those under the so-called Credit Suisse facility with its $242 million of debt secured by all the assets. Secured convertible noteholders are owed $160 million.