Bay Harbour to reduce funding in booster developer until NASA clarifies plans for International Space Station
Low-cost booster developer Kistler Aerospace is laying off most of its 25 employees after major investor Bay Harbour Management cut back funding, citing slow progress with NASA’s plans to use commercial launches to resupply the International Space Station.
Kistler emerged from Chapter 11 bankruptcy protection in March after the New York-based investment firm agreed to provide $15 million in financing for development of the K-1 reusable launch vehicle. Bay Harbour is reducing its investment “until NASA clarifies its plans and schedules for using commercial space assets to support the International Space Station”, says Kirkland, Washington-based Kistler. While accepting the decision as the “reality of the commercial environment”, the company says it will maintain its assets, including a partially completed K-1 launch vehicle, and continue to pursue “a variety of investment options”. Bay Harbour will continue to fund Kistler “at a reduced level pending further developments in the market”.
Kistler was forced into bankruptcy by the collapse of the market for low and medium Earth orbit satellite constellations. When the company emerged from Chapter 11 in March, the first K-1 was 75% complete and a first launch was projected for 2007.
GRAHAM WARWICK/WASHINGTON
Source: Flight International
