Bankruptcy Court Rejects SES ProtoStar 2 Bid Agreement
The U.S. Bankruptcy Court of Delaware has rejected a proposed agreement between ProtoStar and SES over the auction of the ProtoStar 2 satellite, scheduled for Dec. 16.
Under the terms of the agreement, filed with the court Dec. 9, SES would have offered a floor bid of $185 million in cash for ProtoStar 2 in exchange for a guaranteed $6.3 million in compensation from the bankruptcy court if SES were outbid.
In the court documents, ProtoStar argued that SES’s offer would attract higher bids for the satellite, since its floor bid was close to the high-end of ProtoStar 2’s estimated value. ProtoStar also claimed that SES would withdraw its $185 million bid if it were not guaranteed compensation. “There is substantial risk that ProtoStar will not be able to realize the same value,” ProtoStar said.
In November, Intelsat won the auction for ProtoStar 1 with a bid of $210 million. ProtoStar 2, launched in May and equipped with 27 Ku-band and 13 S-band transponders, is located at 107.7 degrees East.