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

To: Bernard Levy who wrote (6035)	5/5/1999 8:44:00 PM
From: Rocket Scientist	Respond to of 10852

Bernard Levy: Well, I don't know the particulars, but I can easily imagine the following scenario in which Loral has very little say: Suppose Hughes is under contract to deliver the satellite in orbit, probably on fixed price basis; it buys the l/v from Boeing. Loral is fully insured for the asset value (probably a requirement of the Orion loan, anyway common/good practice). Hughes relies on Boeing (the experts) to recommend go/no go, probably does a reasonable amount of DD, but not too extensive; the insurers may or may not be looking over everybody's shoulders. What basis does Loral have to interfere? After all, as it tells everybody, it's not a L/V expert; if it delays the launch without good cause, it may be responsible for the resulting costs. No, in this situation, I think it's absolutely normal that Loral would rely on the good faith recommendation of Hughes, which relies on Boeing. I doubt it gave the matter a second thought. Better days ahead (I hope) RS