Loral Space & Communications
announced today that it has reached a settlement with China Telecommunications
Broadcast Satellite Corporation (ChinaSat) regarding the Space Systems/Loral-
built ChinaSat 8 satellite and its launch. Beneficial to both parties, this
settlement amicably resolves all outstanding differences between the company
and ChinaSat.
Under the terms of the settlement, which is subject to bankruptcy court
approval, Space Systems/Loral (SS/L) will continue to seek the required State
Department approvals to export the satellite and agrees to assume its contract
with ChinaSat, as amended to reflect the terms of the settlement. Further,
SS/L has no obligation to deliver the ChinaSat 8 satellite until all required
export licenses are received. Also pursuant to the agreement, ChinaSat will
withdraw all claims filed against SS/L and release it from any related
liabilities. Furthermore, ChinaSat has the right under the settlement to
assign its rights in the satellite contract to a third party under certain
circumstances.
“We are very pleased with the outcome of our settlement discussions with
ChinaSat,” stated Bernard L. Schwartz, Loral’s chairman and CEO. “This accord
resulted from a high degree of cooperation between the parties to arrive at a
solution that is favorable to both of us.”
Based in Beijing, China, ChinaSat is the first satellite company that
operates satellites and provides satellite telecommunications and broadcast
services in China.
Loral Space & Communications is a satellite communications company. Its
Space Systems/Loral division is a world-class leader in the design and
manufacture of satellites and satellite systems for commercial and government
applications including direct-to-home television, broadband communications,
wireless telephony, weather monitoring and air traffic management. Through its
Loral Skynet division, it owns and operates a fleet of telecommunications
satellites used to broadcast video entertainment programming, distribute
broadband data, and provide access to Internet services and other value-added
communications services. For more information, visit Loral’s web site at
http://www.loral.com.
This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. In addition, Loral Space &
Communications Ltd. or its representatives have made or may make forward-
looking statements, orally or in writing, which may be included in, but are
not limited to, various filings made by the company with the Securities and
Exchange Commission, press releases or oral statements made with the approval
of an authorized executive officer of the company. Actual results could differ
materially from those projected or suggested in any forward-looking statements
as a result of a wide variety of factors and conditions. These factors include
those related to the filing, on July 15, 2003 by Loral and certain of its
subsidiaries, of voluntary petitions for reorganization under chapter 11 of
title 11 of the United States Code in the United States District Court for the
Southern District of New York and parallel insolvency proceedings in the
Supreme Court of Bermuda in which certain partners of KPMG were appointed as
joint provisional liquidators. Additional factors and conditions are also
described in the section of the company’s annual report on Form 10-K for the
fiscal year ended December 31, 2003, entitled “Commitments and Contingencies,”
and the company’s other filings with the Securities and Exchange Commission.
The reader is specifically referred to these documents.
