Wednesday, September 27, 2006

XM Loses Arbitration Claim For Satellite Insurance

XM Loses Satellite Insurance Arbitration
(posted by www.orbitcast.com), Sept 27, 2006

XM Satellite Radio in a recent SEC filing reported that they have lost their arbitration claim to recover the remaining 20% of the value of the two Boeing 702 class satellites put in orbit (XM-1 and XM-2).
In July 2004, XM reached agreement with insurers that covered 80% of the amount insured. The problem lies with a progressive solar array power degradation issue that is common to the first six Boeing 702 class satellites put in orbit. XM-1 and XM-2 just happen to be the fifth and sixth Boeing 702s launched. XM walked away with about$142 million from the insurers thanks to this.
In August 2004, XM filed for arbitration to get the remaining 20% of the insured amount. It's this claim was rejected, and no further proceeds will be given.
Oh well. You win some, you lose some....READ MORE: HERE