Sunday, June 29, 2003

Loral Space and Alcatel Settle Disputes

Loral Space & Communications and Alcatel settled all outstanding issues between them, including a contract dispute that has been in arbitration. Loral will pay Alcatel $5 million now and an additional $8 million within one year of closing. As part of the settlement, Alcatel will transfer its minority interest in CyberStar to Loral, and Loral will transfer to Alcatel its minority interests in two Alcatel affiliates (Europe*Star and SkyBridge) that Loral had previously written off.