Globalstar is working with Thales Alenia in order to continue...
Globalstar is working with Thales Alenia in order to continue doing business after the American Arbitration Association ruled in favor of Thales in a dispute with Globalstar. “We're working with Thales to come to some resolution so we can move…
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forward,” said Barbee Ponder, Globalstar regulatory affairs vice president. The ruling requires Globalstar to pay Thales about $67 million in termination charges by June 9, Globalstar said. The companies had an agreement to manufacture second-generation satellites. Thales agreed to deliver 24 satellites by 2010 in phase 2 of the agreement, Ponder said. Globalstar received 18 and asked the arbitration panel to determine whether the company could begin receiving satellites for phase 3 for the same fixed price as phase 2 spacecraft, he said. The arbitrators ruled that “Thales has no further obligation to manufacture or deliver satellites under Phase 3 of the contract,” Globalstar said. “We're in daily discussions with Thales regarding … our need for satellites and the delays we continue to experience with phase 2 spacecraft,” Ponder added. Thales said it’s working with Globalstar “to find a solution for the benefit of all stakeholders.”