Globalstar and Thales Alenia Space Mend Fences, Move Forward


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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