Spacecom confirms: Amos 5 lost in space

AMOS E

The Amos 5 satellite is insured for $158 million and the company believes it will receive compensation in 3 months.

Spacecom Satellite Communications Ltd. (TASE:SCC) reports that its Amos 5 satellite is a total loss. Three weeks ago, Spacecom, controlled by Shaul Elovitch, announced that it had lost touch with the satellite, and had consequently discontinued the satellite's services to its customers, mainly customers in African countries.

According to the terms of Spacecom's insurance policy, the satellite's failure entitles the company to complete insurance indemnification. The Amos 5 satellite is insured for $158 million. Spacecom plans to submit a report to its insurers soon, based on the report received from the satellite manufacturer. Soon after the manufacturer's final report, Spacecom will submit its request for insurance compensation under the satellite insurance policy. The company believes that the compensation will be paid within three months.

Losing contact with Amos 5 will cost Spacecom a third of its revenue. The company's next satellite, Amos 6, for which it has already signed a billion-dollar contract with Facebook, will be launched only in February. Capital market sources believe that it will take three years to launch another satellite to take the place of Amos 5.

Spacecom further stated that from the time it lost contact with the satellite, it had constantly tried to renew contact with it. Its efforts were unsuccessful, however, and the satellite has broadcast no signals since the failure. According to optical observations, the satellite was seen at a point in its orbit, and is orbiting at a typical speed for a satellite whose systems have completely shut down, and which is not under the control of its control systems.

According to the Amos 5 manufacturer's report, the most likely reason for the satellite's failure is a complete breakdown in the electricity supply system resulting from an internal malfunction, external damage to a component in the electricity supply system, or related wiring.

Published by Globes [online], Israel business news - www.globes-online.com - on December 15, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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