Thales Alenia Space annonce update regarding Globastar Second Generation arbitration

May 17, 2012

Thales Alenia Space, announced the.conclusion of the arbitration surrounding the satellite manufacturing contract.  The arbitration tribunal rules that the terms provided for in the 2009 amended and restated contract between the Thales and Globalstar no longer govern any future purchase.

The tribunal found a termination for convenience of the entirety of Phase 3 and consequently, Globalstar  owes approximately Euro 53 million in contract cancellation charges. The tribunal finally ruled that Globalstar can only order more satellites on the basis of a mutually agreed price and  contractual terms

The parties are closely working together to find a global solution.

Reynald Seznec, CEO of Thales Alenia Space commented: “We are interested in addressing the issues related to the purchase of additional satellites. We shall work together with Globalstar management with a view to find a solution for the benefit of all stakeholders. We thank all parties for their continued assistance as we go through this process”.