The long-running dispute between SES and Intelsat over how the FCC’s C-band compensation payments are allocated is reaching a conclusion.
A Delaware Appeals Court in June reversed an earlier decision made by Intelsat’s Bankruptcy Court which had decided that SES’s multimillion dollar claim would not be recognized. The Appeals Court ruled the claim was to go back to Intelsat’s Bankruptcy Court. District Judge Robert Payne made the ruling on June 22. “The judgment of the Bankruptcy Court will be reversed,” stated Judge Payne.
The timetable for any challenge to the Appeals Court has now passed. The legal process now requires a fresh decision by Intelsat’s Bankruptcy Court, notes Advanced Television.
SES has been pursuing Intelsat for a 50/50 share of the FCC’s payments (the project gross proceeds). Both SES and Intelsat were part of the C-band Alliance that emerged in 2018. They signed a consortium agreement to lobby initially for a private auction of C-band assets in the U.S. owned by SES and Intelsat. Members were also to share proceeds resulting from the parties giving up their spectrum rights.
But the FCC didn’t allow a private auction, Inside Towers reported. Instead, the agency conducted its own C-band auction, with compensation going to each of the satellite operators supplying signals to the U.S. (including Eutelsat and Telesat of Canada).
At year-end, the FCC is committed to paying out totals of $4.865 billion to Intelsat and $3.968 billion to SES provided they clear their C-band spectrum on time, according to Advanced Television. Both parties have now filed their Phase 2 certifications which are awaiting validation by the FCC. A portion of these amounts has been paid to Intelsat and SES following the successful completion of Phase 1 of the C-band clearance process.
Intelsat’s Bankruptcy Court is required to issue a new decision in the light of the Appeal Court’s ruling. But the final ruling could take months to emerge.
By Leslie Stimson, Inside Towers Washington Bureau Chief
Reader Interactions