Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Valueman who wrote (1784)	1/29/1998 6:34:00 PM
From: Snake	Read Replies (2) \| Respond to of 10852

What type of cancellation terms are in satellite contracts? My main questions are regarding the satellite contracts. I know each one probably is different based on the negotiation, but when does SS/L get paid for the satellite, upon completion or in installments? Do they get to keep the money aready paid if on installments? Does the company ordering the satellite put up any security, such as licneses, etc to ensure events like today don't happen if they change their mind? Is it standard practice for Loral or other vendors to provide "vendor financing" of sorts and in exchange for a big equity position in the company? They did obtain an equity position in CD Radio plus providing some vendor financing? Could something like this be in the offering for the Asian companies? The next few months will be interesting to see what happens. Also wonder if they can push up delivery of any more satellites to offset losses on the Asian birds. I guess moving up any Skynet birds to produce revenue earlier would be good. All sorts of possibilities here.