Loral Compensates MDA For IS-19 Payment Loss

摘要

Loral Space and Communications has made a $6.5 million cash payment to MDA of Canada to compensate MDA for the loss of future orbital-incentive payments from a satellite built by Space Systems/Loral, which Loral sold to MDA in November, Loral said. The Intelsat IS-19 satellite, launched in June 2012, suffered a partial loss of capacity when one of its solar arrays did not fully deploy. As is common in satellite contracts, Luxembourg- and Washington-based Intelsat had withheld a portion of the payment due Space Systems/Loral as orbital incentives. Orbital incentives typically amount to 10 percent of a satellite's contract price. They are paid out annually, with interest, by the satellite's owner for the spacecraft's scheduled 15 years of in-orbit service. A manufacturing defect discovered at any time during this period can reduce future orbital incentive payments.