Space Systems/Loral Reaches Favorable Settlement With ChinaSat
Wednesday February 23, 9:00 am ET
NEW YORK, Feb. 23 /PRNewswire-FirstCall/ -- Loral Space & Communications announced today 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.
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. For more information, visit Loral's web site at loral.com.
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, Loral Space & Communications Ltd. or its representatives have made or may make forward- looking statements, orally or in writing, which may be included in, but are not limited to, various filings made by the company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. These factors include those related to the filing, on July 15, 2003 by Loral and certain of its subsidiaries, of voluntary petitions for reorganization under chapter 11 of title 11 of the United States Code in the United States District Court for the Southern District of New York and parallel insolvency proceedings in the Supreme Court of Bermuda in which certain partners of KPMG were appointed as joint provisional liquidators. Additional factors and conditions are also described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2003, entitled "Commitments and Contingencies," and the company's other filings with the Securities and Exchange Commission. The reader is specifically referred to these documents.
Contact: Jeanette Clonan
John McCarthy
(212) 697-1105
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This looks like good news. Plus 2 satellite deals. |
