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Intelsat CEO Said 50-50 Split Still in Effect, SES CEO Testifies

Updates SES sought to the C-band satellite operator consortium agreement in early 2020 reflected changes such as Telesat’s cut of clearing proceeds rather than trying to cement a 50-50 proceeds split with Intelsat, SES CEO Steve Collar testified Tuesday. Trial…

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began Monday in U.S. Bankruptcy Court in Richmond regarding SES' suit against Intelsat on the collapse of the consortium (see 2202070031). Collar said in early 2020 SES still believed the 50-50 split governed the handling of Intelsat and SES clearing proceeds. He said he was unaware Intelsat was delaying a consortium update, referring to an internal Intelsat email by Michelle Bryn indicating she “can’t stall on this much longer.” Collar testified he at one point in early 2020 asked Intelsat CEO Steve Spengler directly about the 50-50 split, which Spengler confirmed. Collar said he raised the issue because Intelsat “was under extreme [financial] stress. It was a perfectly reasonable thing to seek assurances.” Collar said he and Intelsat met with White House Chief Economic Adviser Larry Kudlow days before the FCC’s C-band clearing order, not so much because President Donald Trump would necessarily sign off on that order but for him to “be aware of it.” During cross-examination, Kirland and Ellis lawyer Jeff Zeiger, representing Intelsat, walked Collar through a series of internal SES emails, noting they repeatedly didn't say anything about a 50/50 proceeds split with Intelsat.