|
NewSat Jabiru-1
Satellite Project Update
27 January 2015
NewSat Limited provides
the following update in
relation to its Jabiru-1
project financing and
construction
arrangements.
Jabiru-1 project
financing
As previously announced
last year, NewSat
obtained a formal waiver
for an alleged technical
breach of its Jabiru-1
satellite project
financing facilities.
NewSat and the lenders
have been in ongoing
discussions concerning
satisfaction of the
outstanding conditions
and the basis on which
debt funding could
recommence. Recent
discussions focused
primarily on the
delivery date for Jabiru-1
and a potential extended
delay to the project if
the satellite is
delivered late (due to
potentially missing the
launch window). NewSat
and the lenders are also
discussing these
concerns with Lockheed
Martin Corporation
(‘Lockheed Martin’), the
satellite manufacturer
of Jabiru-1. Lockheed
Martin has expressed
confidence in meeting
its expected delivery
date for Jabiru-1 for Q1
2016, if a mutually
agreeable resolution to
the outstanding issues
is achieved shortly, as
described below.
Also as previously
announced, additional
equity is expected to be
required in connection
with the recommencement
of debt funding. NewSat
has received conditional
proposals to invest or
underwrite up to $60
million in equity and is
considering these
proposals with the
lenders.
While the Jabiru-1
satellite project
financing facilities may
not currently be drawn
upon, the agreements
have not been terminated
and the parties are in
continued discussions on
how to resolve the
outstanding issues.
Arrangements with Jabiru-1
satellite manufacturer,
Lockheed Martin
Given the delays in the
recommencement of debt
funding, payments to
Lockheed Martin have
become overdue. This has
caused Lockheed Martin
to give notice that
NewSat is in default of
the contract for the
construction of the
Jabiru-1 satellite in
respect of overdue
payments of US$21
million and issued a
termination notice to
NewSat in respect of
such contract.
Over recent weeks,
NewSat has been working
with Lockheed Martin and
the lenders to resolve
the outstanding matters.
Now that Lockheed Martin
has issued a termination
notice, there is an
extended cure period
during which the default
may be remedied. NewSat
understands that
Lockheed Martin is
continuing with
construction of the
satellite at this time.
NewSat, Lockheed Martin
and the lenders are
meeting regularly with a
view to remedy the
default, agree the terms
on which debt funding
could recommence and
resolve all outstanding
issues.
NewSat is confident that
if debt funding
recommences and payment
is made to Lockheed
Martin shortly
construction of the
satellite by Lockheed
Martin will not slow
down or be stopped, with
the delivery of Jabiru-1
expected on schedule for
the current launch
window (March to May
2016).
NewSat will update the
market on developments
as appropriate.
|
