Loral Space & Communications said Wednesday that the U.S. Bankruptcy Court for the Southern District of New York has authorized Loral subsidiary Space Systems/Loral (SS/L) to execute an existing contract with DIRECTV, Inc., as amended, to complete and deliver the DIRECTV 7S satellite.
The court also approved the binding authorizations to proceed (ATPs) issued to SS/L for the construction of two satellites for DIRECTV (DIRECTV 8 and DIRECTV 9S), and one satellite for PanAmSat Corporation (Galaxy 16). PanAmSat also has an option to order an in-orbit spare for one of its existing satellites from SS/L on terms to be agreed upon.
The aggregate value of the three new awards is in excess of $320 million. DIRECTV will make advance payments of $25 million on each of its two new satellite orders and PanAmSat will make an advance payment of $25 million on its new satellite order, for a combined non-refundable cash advance of $75 million. SS/L now has received orders for a total of four satellites this year.
Also, EchoStar Communications Corporation sought to purchase the nearly complete DIRECTV 7S, a transaction to which Loral was opposed. DIRECTV agreed to increase the total contract value for the construction of DIRECTV 7S by $25 million to approximately $165 million.
