Creditors Gather as NewSat’s Losses Increase

0

A report in Space News says that increasing losses and a marked revenue drop was reported by Australian start-up satellite service provider NewSat Ltd for the second half of 2014, giving investors scant hope for improvement in the short term. Officials of the industry reported that a downward spiral had been entered by NewSat and if it is not resolved the company will probably be bought out by a financial or strategic investor which has interest in its assets of satellites.

The enforced disposal or auction of Newsat’s assets would mark the first ever significant loss for the French and U.S. credit suppliers in the ten years since they both ventured into major telecomm satellite investment. Sunnyvale, California’s Lockheed Martin Space Systems is currently constructing Jabiru-1, the company’s initial fully-owned satellite. NewSat has failed to maintain milestone payments on schedule; it is in debt by $21m and faces the risk of the contract being suspended. In January Lockheed served a notice of termination of contract to NewSat, which gives NewSat a few months to make the payments required.

Share.

Leave A Reply