Spacecom cancels satellite deals with Loral, SpaceX

Impression of Amos 8 satellite  Image: PR

In March this year, Spacecom signed a $112 million agreement with US company Loral to build its Amos 8 satellite.

Spacecom Satellite Communications Ltd. (TASE:SCC) notified the Tel Aviv Stock Exchange this morning that US company Loral would not build the Amos 8 satellite for it. Spacecom said that today was the final date for making the advance payment on the satellite, and that it had decided not to extend the agreement, so that it is in effect cancelled.

In March this year, Spacecom announced a $112 million agreement with Loral Space & Communications Inc. to build the Amos 8 satellite. Spacecom's previous satellites were built by Israel Aerospace Industries (IAI). In September, the Israeli government decided to award the contract for its new communications satellite to IAI, in order to preserve Israel's satellite construction know-how.

The effective cancellation of Spacecom's agreement with Loral in turn means that its agreement with SpaceX for launching the satellite is cancelled. Spacecom is entitled to repayment of most of the amount it has already paid to SpaceX, owned by Elon Musk.

Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Impression of Amos 8 satellite  Image: PR
Impression of Amos 8 satellite Image: PR
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