NewSat loses Arianespace launch agreement

One of the few remaining assets that bankrupt satellite operator NewSat had to offload its launch services agreement with Arianespace has been terminated. Melbourne-based receivers McGrathNicol said that Arianespace had notified the company that the agreement had been terminated with immediate effect.

NewSat went into administration in April this year, with both the administrator and receiver initially attempting to keep the company viable through appeals to the US bankruptcy court.

However, those plans collapsed when it failed to reach a deal with satellite maker Lockheed, which was building its Jabiru-1 satellite.

Without alternative financing, ownership of the satellite reverted to Lockheed, while McGrathNicol subsequently sold NewSat's teleport assets to SpeedCast for A$12M. It was also attempting to find a buyer for the launch services agreement, to no avail.

Arianespace had previously agreed to a standstill deal under which it would not terminate the Jabiru LSA before 31 July 2015, on the basis that the agreement be assumed or assigned by that date. However, McGrathNicol said that there were no unconditional offers supporting a sale or assignment, resulting in the termination.

NewSat's administrators will this morning hold a creditors meeting in Melbourne, where they will propose liquidating the entire group of companies.
Geoff Long, Commsday