Spacecom agrees $1m claim against Intelsat
August 22, 2022
A long-running dispute between Tel Aviv-based satellite operator Space-Communications Ltd (Spacecom) against Intelsat and centred on an agreement between the two has resulted in Spacecom being awarded an agreed payment of $1 million by Intelsat’s bankruptcy court.
Intelsat and Spacecom both operated satellites at 65 degrees East or nearby. Intelsat agreed to pay Spacecom $650,000 annually as compensation for releasing certain frequencies to Intelsat.
The claim also covers the core “coordination” agreement with certain Intelsat frequencies and signed back in 2013 when Spacecom and Intelsat struck its coordination agreement.
Intelsat entered Chapter 11 bankruptcy in May 2020 and listed a number of then current obligations which would be rejected. On May 24th 2021 Spacecom objected to being added to this list and followed this up on September 3rd 2021 with a more comprehensive claim against Intelsat, and further updated its claim on March 23rd 2022.
A Court ruling on August 19th stated that the parties have now agreed an amended claim and that Intelsat has “timely paid” Spacecom the sum of $1 million and that all Spacecom claims are now considered withdrawn.