Spacecom hits IAI with $138m claim
September 8, 2017
By Chris Forrester
Israel’s Spacecom, which operates the ‘AMOS’ fleet of satellites, is suing Israel Aerospace Industries (IAI) with a $138 million (€114.4m) compensation claim for its Amos-6 satellite lost in a catastrophic fire a year ago when the satellite was atop a SpaceX rocket being fueled.
In an announcement to the Tel Aviv Stock Exchange and the Israel Securities Authority, IAI said that the demand was part of the ongoing arbitration proceedings between the two companies. According to IAI, the demand alleges that Spacecom suffered damage totaling $138 million, plus interest, as a result of the alleged breach of IAI’s obligation to deliver a satellite on the stipulated date.
IAI, in its response to the proceedings, said: “IAI rejects the groundless allegations by Spacecom. The two companies have agreed on an arbitration proceeding concerning them. Given this proceeding, IAI was surprised by the statement of claim, in which Spacecom is demanding $138 million in compensation. IAI is astounded at the baseless arguments contained in the statement of claim, including the excessive amount, and rejects them completely. IAI will file its response accordingly.”
IAI had already received $170 million in insurance cover from the disaster, which it has transferred to Spacecom.