An arbitration tribunalhas ruled against Loral Space & Communications [NYSE: LOR] in its dispute over whether it violated a partnership agreement with Alcatel Space. Still unresolved is whether Loral will have to pay damages to the unit of French telecom technology vendor Alcatel [NYSE: ALA].

A tribunal assigned to address the dispute ruled in favor of Alcatel Space on most of its claims alleging breach of the alliance agreement between the two companies, Loral officials said. The tribunal set a schedule for further submissions by the parties and arranged for hearings in May to determine if any of the breaches warrant the awarding of damages.

If the tribunal finds that Alcatel Space has sustained damages, there could be a “material adverse effect” on Loral’s consolidated financial position and results, Loral officials reported in a recent 8-K filing with the U.S. Securities and Exchange Commission.