Arianespace has scrapped its launch contract with NewSat (ASE:NWT) after the collapsed Australian satellite operator failed to secure a buyer for the agreement. The contract was NewSat’s last significant asset after the group sold its teleport and…
Arianespace has scrapped its launch contract with NewSat (ASE:NWT) after the collapsed Australian satellite operator failed to secure a buyer for the agreement.
The contract was NewSat’s last significant asset after the group sold its teleport and services business last month to Hong Kong-based satcoms firm SpeedCast.
A US bankruptcy court had reportedly given it until 1 August to sell the launch slot to Malaysia’s Measat, which had at one point also been close to buying the Jabiru-1 satellite that the agreement was originally intended for. Measat, which owns the Ka-band rights for the 91.5E orbital slot where Jabiru-1 was to be placed, declined to comment.
Lockheed Martin took ownership of the satellite it was building for NewSat in May, a month after the latter filed for Chapter 15 protection as a result of being locked out of Jabiru-1’s project financing facilities.
This has left NewSat as a shell company with residual assets such as licences and customer contracts relating to Jabiru-1.
Meanwhile, former NewSat CEO Adrian Ballintine is facing corporate governance violation allegations over a loan that was reportedly secured by transferring shares during a blackout period.
Governance and capital raising concerns are what prompted US Ex-Im Bank and Coface to shut down Jabiru-1’s funding. Ex-Im was providing a loan of close to US$290m while Coface had guaranteed about US$110m of debt.
PPB Advisory is NewSat’s administrator for the bankruptcy and McGrathNicol is acting as receiver.
