Loral To Pay Alcatel $13M As Part of Contract Settlement
New York-based Loral Space & Communications [NYSE: LOR] and Paris-based Alcatel [NYSE: ALA]announced Tuesday that they had reached a settlement resolving all outstanding issues between them, including a contract dispute that has been in arbitration since 2001.
Loral will pay Alcatel $5 million now and an additional $8 million within one year. As part of the settlement, Alcatel will transfer its minority interest in CyberStar to Loral, and Loral will transfer to Alcatel its minority interests in two Alcatel affiliates — Europe*Star and SkyBridge.
In addition, Alcatel, Intelsat and Loral have agreed that Intelsat will pay Alcatel directly, rather than through Loral, for Alcatel’s share of incentives on the Intelsat IX and VII satellite programs. Alcatel expects these payments to reach $60 million over the next few years.
Separately, Alcatel announced that it won a “multi-million dollar” contract to provide a satellite broadband access network to China’s Nanjing Toptry China-Spacenet. The network will include a satellite gateway, customer premise equipment and a network management platform.