Intelsat Regains Control of the Intelsat Americas 7 Satellite

Intelsat continues to work closely with Space Systems/Loral to determine and fully analyze the cause of last week's anomaly on Intelsat America’s 7.

Pembroke, Bermuda, Dec. 4/Satnews Daily/ ¾  Intelsat, Ltd. announced Friday it had regained contact and control of the Intelsat Americas 7 satellite, which experienced a sudden and unusual electrical distribution anomaly on November 28. Intelsat said this was the result of an intensive recovery effort launched by the Intelsat technical team.

Intelsat added service restoration is underway, with several key customers expected to be operational on IA-7 by the end of the day. Although testing of the satellite’s capabilities is still underway, Intelsat said in a statement, operations have been restored on a portion of the satellite’s transponders,

Prior to IA-7’s reactivation Friday night, the affected Intelsat customers had all been offered alternate capacity at different orbital locations, with many customers restored on alternate Intelsat capacity within hours of Sunday morning’s anomaly. 

The exact cause of the anomaly, according to Intelsat, is still being investigated, in cooperation with Space Systems/ Loral, the satellite’s manufacturer, and Loral Skynet, each of whom participated in the recovery effort.

“Our first priority in this event was to address the needs of our existing customers and their end-users,” said Conny Kullman, CEO of Intelsat, Ltd. He added Zeus Holdings Limited, Intelsat’s prospective acquirer, is fully apprised of developments as they occur with respect to the IA-7 satellite.

Under the terms of the agreement dated August 16, 2004, among Intelsat, Ltd., Intelsat (Bermuda), Ltd., Zeus Holdings Limited, Zeus Merger One Limited and Zeus Merger Two Limited, the total loss of the IA-7 satellite would give the purchasers the right not to consummate the acquisition of Intelsat for $5 billion, including approximately $2 billion of Intelsat’s existing debt. Intelsat shareholders approved last October the proposed acquisition of the company by Zeus Holdings Limited, a company formed by a consortium of private equity groups: Apax Partners, Apollo Management, Madison Dearborn Partners and Permira.

Kullman said “Zeus is continuing its evaluation of the situation.”

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