Jacques van Oene
January 17th 05, 03:25 PM
Intelsat Reports Loss of IS-804 Satellite
Many customers already restored to normal operations
Pembroke, Bermuda, 16 January 2005
Intelsat, Ltd. announced today that its IS-804 satellite experienced a
sudden and unexpected electrical power system anomaly on January 14, 2005,
at approximately 5:32 p.m. EST that caused the total loss of the spacecraft.
In accordance with existing satellite anomaly contingency plans, Intelsat is
in the process of making alternative capacity available to its IS-804
customers. The satellite, launched in 1997, furnished telecommunications and
media delivery services to customers in the South Pacific. Intelsat and
Lockheed Martin Corporation, the manufacturer of the satellite, are working
together to identify the cause of the problem. Intelsat currently believes
that there is no connection between this event and the recent IA-7 satellite
anomaly as the two satellites were manufactured by two different companies
and their designs are different.
A number of Intelsat-operated satellites in the region are being utilized to
restore service to affected customers, and many end users of IS-804 capacity
are already operating normally using replacement capacity. Intelsat has also
begun working with other fleet operators where necessary to ensure the
quickest possible restoration of service for customers.
"The loss of a satellite is an extremely rare event for us, and our first
priority must be restoration of service to our customers," said Conny
Kullman, CEO of Intelsat, Ltd. "Intelsat remains firmly committed to the
region that was covered by IS-804, and all necessary effort and assets will
be allocated to ensure Intelsat satellite coverage throughout the
Asia-Pacific region."
Intelsat expects to record a non-cash impairment charge of approximately $73
million to write off the value of the IS-804 satellite. The IS-804 was not
insured, in accordance with Intelsat's practice of insuring only those
satellites with a net book value greater than $150 million.
Under the terms of the Transaction Agreement and Plan of Amalgamation for
the sale of Intelsat dated August 16, 2004, among Intelsat, Ltd., Intelsat
(Bermuda), Ltd., Zeus Holdings Limited (Zeus Holdings), Zeus Merger One
Limited and Zeus Merger Two Limited, the total loss of the IS-804 satellite
gives Zeus Holdings the right to not consummate the acquisition of Intelsat.
Zeus Holdings has advised Intelsat that it is evaluating the impact of the
IS-804 failure.
About Intelsat
As a global communications leader with 40 years of experience, Intelsat
helps service providers, broadcasters, corporations and governments deliver
information and entertainment anywhere in the world, instantly, securely and
reliably. Intelsat's global reach and expanding solutions portfolio enable
customers to enhance their communications networks, venture into new markets
and grow their businesses with confidence.
For further information, please contact us at
or at +1 202-944-7500.
--
--------------
Jacques :-)
www.spacepatches.info
Many customers already restored to normal operations
Pembroke, Bermuda, 16 January 2005
Intelsat, Ltd. announced today that its IS-804 satellite experienced a
sudden and unexpected electrical power system anomaly on January 14, 2005,
at approximately 5:32 p.m. EST that caused the total loss of the spacecraft.
In accordance with existing satellite anomaly contingency plans, Intelsat is
in the process of making alternative capacity available to its IS-804
customers. The satellite, launched in 1997, furnished telecommunications and
media delivery services to customers in the South Pacific. Intelsat and
Lockheed Martin Corporation, the manufacturer of the satellite, are working
together to identify the cause of the problem. Intelsat currently believes
that there is no connection between this event and the recent IA-7 satellite
anomaly as the two satellites were manufactured by two different companies
and their designs are different.
A number of Intelsat-operated satellites in the region are being utilized to
restore service to affected customers, and many end users of IS-804 capacity
are already operating normally using replacement capacity. Intelsat has also
begun working with other fleet operators where necessary to ensure the
quickest possible restoration of service for customers.
"The loss of a satellite is an extremely rare event for us, and our first
priority must be restoration of service to our customers," said Conny
Kullman, CEO of Intelsat, Ltd. "Intelsat remains firmly committed to the
region that was covered by IS-804, and all necessary effort and assets will
be allocated to ensure Intelsat satellite coverage throughout the
Asia-Pacific region."
Intelsat expects to record a non-cash impairment charge of approximately $73
million to write off the value of the IS-804 satellite. The IS-804 was not
insured, in accordance with Intelsat's practice of insuring only those
satellites with a net book value greater than $150 million.
Under the terms of the Transaction Agreement and Plan of Amalgamation for
the sale of Intelsat dated August 16, 2004, among Intelsat, Ltd., Intelsat
(Bermuda), Ltd., Zeus Holdings Limited (Zeus Holdings), Zeus Merger One
Limited and Zeus Merger Two Limited, the total loss of the IS-804 satellite
gives Zeus Holdings the right to not consummate the acquisition of Intelsat.
Zeus Holdings has advised Intelsat that it is evaluating the impact of the
IS-804 failure.
About Intelsat
As a global communications leader with 40 years of experience, Intelsat
helps service providers, broadcasters, corporations and governments deliver
information and entertainment anywhere in the world, instantly, securely and
reliably. Intelsat's global reach and expanding solutions portfolio enable
customers to enhance their communications networks, venture into new markets
and grow their businesses with confidence.
For further information, please contact us at
or at +1 202-944-7500.
--
--------------
Jacques :-)
www.spacepatches.info