Recent SatelliteFinance Headlines

• WorldSpace to be liquidated

  18 May 12

  Ill-fated global satellite radio venture WorldSpace is to finally go bankrupt. Having originally filed for Chapter 11 bankruptcy protection back in 2008, the company is now seeking to convert the case into Chapter 7, the process of liquidation under bankruptcy laws.

  In its filing to the Delaware bankruptcy court, WorldSpace said that it does not have enough cash remaining to fund its administrative expenses. The company stated: “The Debtors do not believe that they will be able to propose or confirm a plan in these cases, and are incurring administrative expenses. Based on these circumstances, the Debtors request that the Court grant the Motion to convert these cases as soon as possible.”
• Indosat may boost bond size – CFO

  18 May 12

  Indonesian satellite operator Indosat is considering increasing the size of a planned bond issue because of large investor demand, CFO Curt Stefan Carlsson was quoted telling Jakarta Globe.

  The company was originally seeking to raise Rp2.5trn (US$270.7m) but this may now be increased to Rp3trn (US$324.8m), Carlsson reportedly said after an annual shareholders meeting earlier this week.
• Frontier out with US$500m bond refinancing

  17 May 12

  US-based rural broadband and satellite TV provider Frontier Communications is seeking to raise US$500m through the issue of 9-year senior unsecured notes.

  Joint book-running mangers on the transaction are Barclays, Deutsche Bank, Morgan Stanley and RBS, while co-managers are Citigroup, Credit Suisse and JP Morgan.
• Globalstar loses arbitration case against Thales

  17 May 12

  The three-judge commercial arbitration tribunal has ruled in favour of satellite manufacturer Thales Alenia Space in its dispute with Globalstar over the mobile satellite operator’s option to purchase up to 23 second-generation satellites in addition to the 25 satellites already purchased.

  The arbitrators found that terms provided for in the 2009 amended and restated satellite manufacturing contract between the Thales and Globalstar no longer govern any future purchase. The arbitrator's ruling requires Globalstar to pay Thales approximately €53m in contract termination charges by 9 June 2012.
• Measat sues Intelsat for US$29m over breach of launch contract

  15 May 12

  Malaysian satellite operator Measat has filed a lawsuit against Intelsat accusing it of breach of contract and collusion with regard to the protracted launch of the Measat-3a satellite in 2009. Measat is seeking damages of US$29m plus punitive damages and legal costs and has requested there be a jury trial.

  The case is being held in the United States District Court, Central District of California, with Judge Ronald Lew as the presiding judge. Jones Day is legal counsel to Measat in its claim.

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