Spacecom to receive $196m insurance for Amos 6 explosion

Amos-6 satellite, photo: PR

The money will be paid later this month by Israel Aerospace Industry, which insured the ill-fated satellite with UK insurers Lloyds.

Spacecom Satellite Communications Ltd. (TASE:SCC) notified the Tel Aviv Stock Exchange (TASE) this morning that it will receive a $196 million insurance payment this month from Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1). IAI built the Amos 6 communications satellite, which exploded two months ago aboard Elon Musk's SpaceX Falcon launcher in Florida, several days before it was due for a routine test firing. IAI is also due to pay Spacecom $10 million for late delivery of the ill-fated satellite.

The insurance money will be paid directly into the account set up under lien to Spacecom's bondholders. IAI's insurance policy was with the UK syndicate Lloyds. However, the money will not compensate for lost revenue of some $200 million for contracts signed with communications providers.

Earlier this week, Spacecom reported that the deadline for negotiations on its $285 million sale to Chinese company Beijing Xinwei Technology Group had been extended to November 15. The sale, first reported in August, has been thrown into doubt by the explosion of Amos 6.

Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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Amos-6 satellite, photo: PR
Amos-6 satellite, photo: PR
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