EchoStar Bids for Loral Satellite Assets
August 21, 2003
A month after Intelsat signed a $1 billion bid for Loral Space and Communications' satellite assets, EchoStar has stepped up to the plate and submitted its own rival bid for an undisclosed amount.
As a condition of its bankruptcy filing on July 15, Loral had signed a deal with Intelsat to sell its six North American satellites. The new informal bid from EchoStar was made public after bidding procedures were approved by a Bankruptcy Court on Aug. 18. Loral said it would evaluate EchoStar's bid for the balance of the company's FSS fleet and satellite manufacturing assets.
"We will consider all bids received very carefully, noting that our current plan is to emerge from the bankruptcy process with a viable, ongoing satellite services and manufacturing business," said Bernard Schwartz, Loral CEO.
The bid marks the second time in as many years that EchoStar has attempted to snag new satellite assets. The Littleton, Colo.-based satellite broadcaster's bid to acquire DirecTV -- eventually scuttled by the FCC -- included the assets of PanAmSat.