Globalstar and Thales Alenia Space Mend Fences, Move Forward

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Globalstar and Thales Alenia Space said June 25 they had buried the hatchet with regard to prior legal disputes and agreed to the terms of a commercial proposal for the purchase of additional Globalstar satellites.

The Covington, La.-based fleet operator currently has 18 of 24 second-generation Globalstar satellites in orbit. The settlement with Thales ensures the Cannes, France-based spacecraft manufacturer will deliver a remaining batch of six Globalstar satellites for launch later this year.

In addition, the companies agreed to the terms of a new contract to purchase six additional second-generation satellites to be built by Thales. The contract is expected to be signed “in the near future,” with work slated to begin this year, according to a June 25 news release issued by Globalstar.

The agreement also settles a dispute between the companies that arose when Globalstar sought to purchase six additional satellites at a price agreed to under a previous 24-satellite contract, an option that Thales said has since expired.

The news release did not address whether cash-strapped Globalstar is still obligated to immediately pay Thales Alenia Space roughly $65 million in contract termination fees as directed by the American Arbitration Association in May.

“This agreement both settles the previous disputes between Globalstar and Thales and establishes a clean slate for the program once again, such that the parties are now positioned to work as strategic partners for the long-term,” Globlstar Chairman and CEO Jay Monroe said in the news release.

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