SES Seeks $1.8B From Intelsat for CBA Agreement Violation
SES filed a $1.8 billion claim Tuesday in Intelsat's bankruptcy, claiming the rival C-band operator committed breach of contract and of fiduciary duties plus unjust enrichment stemming from Intelsat's alleged violation of the C-Band Alliance agreement terms. Intelsat didn't comment. The claim, filed in U.S. Bankruptcy Court in Richmond, said the CBA agreement set up SES and Intelsat as the lead members, splitting both control and the vast majority of the alliance's proceeds. SES said even after FCC Chairman Ajit Pai said the agency would pursue a public auction, the two still continued to partner until the draft C-band order, which laid out incentive payment terms for the satellite operators, with Intelsat getting a bigger share.
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That's when Intelsat repudiated its CBA obligations, including one to split the proceeds evenly, SES said. That amounts to $450 million that should be SES' under the 50-50 proceeds split, it said.
Under the FCC's accelerated clearing incentive plan, Intelsat is eligible for $4.87 billion, SES for $3.97 billion.