[Satellite TODAY 10-07-11] Thales Alenia Space rejected Globalstar’s recent order for six quick-delivery spacecraft as part of its second-generation constellation, according to documents filed Oct. 5 with the U.S. Securities and Exchange Commission (SEC).

   In the filing, GlobalStar revealed that its prime contractor for its second-generation mobile communications satellite constellation said the company had, “no right to place the order.” Globalstar also said that it has made adjustments to its bank financing structure that will allow the company to delay its in-service date for the 24 second-generation satellites already under construction without violating its loan covenants with its lending consortium.

   French export-credit agency Coface, which is part of the consortium, has agreed to allow Globalstar to use its current resources to order the six new satellites under the terms that the contract can be concluded for 55.2 million euros ($75 million) or less.

   Globalstar and Thales Alenia Space confirmed that the two companies have submitted disputes over future contractual satellite construction obligations to the American Arbitration Association and that an arbitration hearing has been scheduled for Jan. 24.