XM Radio is dragging its feet on the Sat. deal. XM has no money essentially. They have an unusable bird ( built by BA(so what's new)). They need the insurance money from the dead bird to build a new one. So far it ain't happening. The pessimists at SS/L say it won't happen
Here are some notes from XM's 10-K
Our business plan contemplates the use of either insurance proceeds and/or vendor financing to launch replacement satellite(s). "
Vendor Financing leaves Loral out!
"We have spacecraft launch and in-orbit insurance policies that provide coverage to us for a total, constructive total or partial loss of either of our satellites where such loss arises from an occurrence within the first five years after launch. The aggregate sum insured in the event of the total or constructive total loss of our satellites is $400 million ($200 million per satellite). In September 2001, we advised our insurance carriers that the aforementioned solar array situation was likely to result in a claim under our in-orbit insurance policies and, in the first quarter of 2003, we filed a claim with the insurance carriers for the aggregate sum insured (less applicable salvage); we believe we will ultimately receive insurance payments adequate to launch our spare satellite and commence work on an additional satellite, "
continues
Insurance. We bear the risk of loss for each of the satellites, and we have obtained insurance to cover that risk. We have launch and in-orbit insurance policies from global space insurance underwriters. These policies provide coverage for a total, constructive total or partial loss of either of the satellites that occurs during a period ending five years after launch. Our insurance will not cover the full cost of constructing, launching and insuring two new satellites, nor will it protect us from the adverse effect on our business operations due to the loss of a satellite; however, we believe we will ultimately receive insurance payments adequate to launch our spare satellite and commence work on an additional satellite, although there is no assurance that would be the case. Our policies contain standard commercial satellite insurance provisions, including standard coverage exclusions. We have filed a claim under our in-orbit insurance policy, as described above under the heading “—Satellite System.”
So they believe the insurance proceeds will fund launch of the Boeing Spare and "commence work on an (singular) additional satellite.
In addition. The filed a claim on satellites that the EXPECT to fail in the next five years..
Ever here of an insurance company issuing proceeds today for something that is EXPECTED to happen in the future?
PCSTEL
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