Paper: Satmex could push back satellite launch to 2004

Mexican satellite operator Satmex may postpone the launch of Satmex 6 to early 2004 as it struggles to restructure debts and resolve technical problems, local daily El Financiero reported Satmex vice president Arturo Gonzalez as saying. Gonzalez doubted an agreement would be reached with creditors in the short-term even though negotiations have been ongoing. "We are tied to reaching an agreement with bond holders for debts of US$320mn since [restructuring our debts] is a condition imposed by the US Exim Bank and Cofase of France in order to receive a US$226mn credit guarantee. We also need US$70mn for additional insurance for Satmex 6 and a ground crew to operate it," Gonazlez said. Furthermore, technical problems with the French-made Arianespace rocket that will be used to launch the satellite, he said. Satmex 6 will provide coverage to all of North America and South America, and complement the company's existing fleet of the Solidaridad II and Morelos II satellites. Satmex has enjoyed more success in renegotiating a US$180mn debt with its minority shareholder, the Mexican government. "The government on several occasions has said it is ready to help Satmex renegotiate that debt and the talks are very advanced," he said, adding there could be a breakthrough during the next few weeks. The Mexican consortium of Principia and Loral controls 75% of Satmex, while the government has the other 25%.