Back in October we predicted that Newsat would struggle to sort its problems out with its lender US EXIM bank, who are notoriously fastidious.
Newsat announced this week that as a result of not being paid due to ongoing breach of the loan agreement, Lockheed have now terminated the manufacturing contact. Who will end up owning the asset? Well, Newsat does not own spectrum – the filings they bought from Kyprosat are nowhere near the ITU Master register and therefore could not be financed. They are instead using – at great cost – a filing owned by canny Asian operator Measat. So if Measat see a chance for a bargain there might be a deal to be done. Trouble is the satellite is designed to land traffic mainly in Australia so the alternative uses may constrain the recovery value.