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Spacehab has filed a formal claim against NASA in the amount of $87.7 million for the value of its Research Double Module (RDM) and related equipment that was destroyed during the STS-107 Space Shuttle Columbia accident. In July 2003 Spacehab submitted a detailed claim in draft to NASA for recovery of its RDM investment in the amount of $87.0 million. The claim has since been revised and re-filed with NASA to incorporate the findings of the Columbia Accident Investigation Board report. NASA has sixty days to respond to the claim or request an extension period. Spacehab's contract with NASA included an indemnification provision providing for any loss of, or damage to, the Company's flight hardware up to $8.0 million. Spacehab's final claim in the amount of $87.7 million includes a separately filed claim for the $8.0 million contractually-stipulated provision plus losses in addition to those contractually specified. The Company believes that such additional amounts are justified and substantiated. Any amounts paid by NASA in support of the $8.0 million contract provision will be deducted from the total claim amount. "We believe that the Company is entitled to recovery of the loss from NASA but there can be no assurances as to the timing or the amount, if any, to be received from the claim," said Brian K. Harrington, Spacehab Senior Vice President and Chief Financial Officer. "Upon resolution of the claim, any proceeds from NASA would be recorded in the period in which the claim is resolved," added Harrington. Spacehab is pursuing discussions with NASA with the goal of settling the claim as soon as possible. As a result of the RDM loss, the Company was required to write off the entire book value of the module net of the commercial insurance recovery. This loss resulted in a material reduction in property, plant, and equipment assets as of March 2003. In February 2003 Spacehab received $17.7 million from the proceeds of its commercial insurance policy. In January 2004 Spacehab received a complaint from Lloyd's of London, the Company's insurer for the RDM, demanding return of the $17.7 million paid Spacehab alleging that the Company, among other things, breached the contracts of insurance by demanding and receiving the insurance proceeds before NASA had paid, or agreed to pay, the contractually obligated $8.0 million loss proceeds. Spacehab believes that Lloyd's complaint is without merit and will respond to the Lloyd's complaint accordingly.
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Washington - Jan 06, 2004NASA Administrator Sean O'Keefe today announced plans to name the landing site of the Mars Spirit rover in honor of the astronauts who died in the tragic accident of the Space Shuttle Columbia in February. The area in the vast flatland of the Gusev Crater where Spirit landed this weekend will be called the Columbia Memorial Station.   Nov 02, 2006 |
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