Spacecom Satellite Communications Ltd. (TASE:SCC) today announced that it had information about the malfunction that caused a breakdown in communications with the Amos 5 satellite. The company also announced that it was likely to receive insurance for the malfunction in early 2016.
Spacecom, which provides satellite communications services through the Amos series of satellites, announced late last week that connection with the Amos 5 satellite had been severed, and services it had been providing to customers had ceased. "At this stage, the company has no information about the substance of the malfunction that caused the breakdown in communications," Spacecom reported, noting that it had not managed to renew its communications with the satellite. The more time passes, the poorer the chances of putting the satellite back into operation.
The company also announced that it had notified the insurance company insuring the satellite of the malfunction, as required under the insurance policy. Spacecom noted that if the connection with the satellite is not resumed in the coming days, and the company, together with the satellite manufacturer, comes to the conclusion that the satellite is a total failure, it will file a claim with the insurance company for compensation under the policy.
Spacecom believes that formulating a claim will take several weeks, and that it will take another 90 days after it is filed before the insurance compensation is paid, meaning that the insurance money should arrive in the first quarter of 2016.
Published by Globes [online], Israel business news - www.globes-online.com - on November 24, 2015
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