Loral Space & Communications announced Wednesday that it has reached a settlement with China Telecommunications Broadcast Satellite Corporation (ChinaSat) regarding the Space Systems/Loral-built ChinaSat 8 satellite and its launch. Beneficial to both parties, this settlement amicably resolves all outstanding differences between the company and ChinaSat.
Under the terms of the settlement, which is subject to bankruptcy court approval, Space Systems/Loral (SS/L) will continue to seek the required State Department approvals to export the satellite and agrees to assume its contract with ChinaSat, as amended to reflect the terms of the settlement. Further, SS/L has no obligation to deliver the ChinaSat 8 satellite until all required export licenses are received.
Also pursuant to the agreement, ChinaSat will withdraw all claims filed against SS/L and release it from any related liabilities. Furthermore, ChinaSat has the right under the settlement to assign its rights in the satellite contract to a third party under certain circumstances.
“We are very pleased with the outcome of our settlement discussions with ChinaSat,” stated Bernard L. Schwartz, Loral’s chairman and CEO. “This accord resulted from a high degree of cooperation between the parties to arrive at a solution that is favorable to both of us.”
Based in Beijing, China, ChinaSat is the first satellite company that operates satellites and provides satellite telecommunications and broadcast services in China.
