IT News — Global satellite operator SpeedCast has snapped up both of NewSat’s Australian teleport sites as the failed local company looks to dispose of its assets and pay down debt after being forced in receivership in April. In a $12 million deal, SpeedCast will take over NewSat’s Perth and Adelaide teleports, including all land, buildings and equipment, plus “most” of its existing customer contracts.
The chief executive and chief financial officer of struggling satellite company NewSat were ousted this week as the company tries to sell off its assets following ongoing financial troubles. The positions held by NewSat CEO Adrian Ballintine and CFO Mark Spragg had been rendered “surplus to NewSat’s needs”, the company’s administrators said today. They revealed Ballintine had been made redundant last Friday and Spragg let go yesterday. Ballintine founded NewSat in 1987 and had been its CEO since 1999.
Faltering satellite company NewSat has suffered another blow after a United States bankruptcy court sided with Lockheed Martin and cancelled the pair’s contract to build the $600 million Jabiru-1 satellite. NewSat’s administrators PBB Advisory could not provide absolute certainty that the Australian satellite company would succeed with refinancing, leading to the bankruptcy court in Delaware to rescind the Lockheed contract.