Space Systems/Loral
Reaches Settlement with ChinaSat
(23 February 2005) Loral Space
& Communications 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
co-operation between the parties to arrive at a solution that is favourable 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.
Loral Space & Communications is a
satellite communications company. Its Space Systems/Loral division is a
world-class leader in the design and manufacture of satellites and satellite
systems for commercial and government applications including direct-to-home
television, broadband communications, wireless telephony, weather monitoring
and air traffic management. Through its Loral Skynet division, it owns and
operates a fleet of telecommunications satellites used to broadcast video
entertainment programming, distribute broadband data, and provide access to
Internet services and other value-added communications services.
(source: Loral Space and Communications)
