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Satnews Daily
February 7th, 2013

Boeing... Seeking Monetary Resolution (Business)


[SatNews] The news is rather on the grim side for Boeing's partners that are involved in the Sea Launch J.V....

...The suit was filed by Boeing in Los Angeles U.S. District Court against RSC Energia and two Ukranian-owned firms PO Yuzhnoye Mashinostroiteny Zavod and KB Yuzhnoye. Boeing claims those firms have failed to ante up the $350+ million Boeing is owed, following the J.V.'s bankruptcy filing back in 2009. The filing also finds Boeing claiming that RSC Energia also undertook actions to avoid honoring its financial liabilities to the firm. Being sought is a minimum of $222.3 million from RSC Energia and $133.4 million from the Yuzhnoye companies.

Sea Launch was formed in 1999 but suffered bankruptcy ten years later, due to a launch that resulted in a failure as well as continuing mounting debt and a much weaker call for launch services. When the bankruptcy occurred, Boeing was required to pay $449 million on loan guarantees. In 2010, Sea Launch emerged from bankruptcy, with RSC Energia increasing their then-25 percent ownership to 95 percent. The remaining five percent was then held by Boeing and Aker Maritime Finance AS, formerly known as Kvaerner. The case is The Boeing Company v. KB Yuzhnoye, et al., U.S. District Court, Central District of California, 13-00730. Somewhat ironic that the suit was filed one day after the failure of Sea Launch's Intelsat-27 satelliet launch.