Israeli satellite company claims SpaceX owes it $50 million or a free flight

Israeli satellite company claims SpaceX owes it $50 million or a free flight

Israeli satellite company claims SpaceX owes it $50 million or a free flight following the recent accidental blast that claimed the former’s communication satellite.

The cause of the explosion that occurred Thursday at Cape Canaveral that destroyed both SpaceX’s Falcon 9 rocket and its Spacecom satellite payload has yet to be determined.

In a conference call with reporters Sunday, Spacecom said that it could also collect $205 million from Israel Aerospace Industries, the company that built the AMOS-6 satellite.

When asked of how it would handle Spacecom’s demands, SpaceX told Reuters that it does not disclose contract or insurance terms. SpaceX is not public, and it has not revealed what insurance it had for the rocket or for the launch pad beyond what the Federal Aviation Administration required.

Spacecom is expecting the loss of its satellite to severely affect it, anticipating an equity decline between $30 million to $123 million.

Reuters reported that Spacecom’s shares dropped 9% on Thursday. Trading in the shares was suspended on Sunday morning, and the company’s stock further dropped another 34% when trading finally resumed.

The explosion could have delayed Spacecom’s planned merger with Beijing Xinwei Technology Group. The latter had agreed last month to purchase the former for $285 million, saying that the deal hinged on whether Spacecom’s AMOS-6 satellite successfully launched or otherwise.

"We hope to continue fruitful communications with the prospective buyer," said Spacecom general counsel Gil Lotan in a conference call.

On Monday, Xinwei officials declined to comment on whether the accident would affect the terms of the deal. Last week, the company said in a statement that it was in close communications with Spacecom about how the incident would impact the merger. The same statement emphasized that the accident would not impact its plans to develop an integrated space information network.
 
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