U.S. court satisfies Boeing's claim for $356 mln reimbursement from Sea Launch partners
The United States District Court for the Central District of California has satisfied an action filed by Boeing seeking $356 million in reimbursement from the other Sea Launch partners, including Ukraine's Pivdenmash.
"On May 12, 2016, the court issued a judgment in favor of Boeing relating to the bank guarantee payment and the partner loan obligations," Boeing said in its quarterly report released on July 27.
The $356 million includes $147 million related to a payment made by Boeing under a bank guarantee on behalf of Sea Launch and $209 million related to loans (partner loans) Boeing made to Sea Launch. The net amounts owed to Boeing by each of the partners are as follows: S.P. Korolev Rocket and Space Corporation Energia of Russia – $223 million, PO Yuzhnoye Mashinostroitelny Zavod of Ukraine (Pivdenmash) – $89 million and KB Yuzhnoye Design Bureau of Ukraine – $44 million.
"We have initiated collection efforts and continue to believe the partners have the financial wherewithal to pay and intend to pursue vigorously all of our rights and remedies. In the event we are unable to secure reimbursement of $147 related to our payment under the bank guarantee and $209 related to partner loans made to Sea Launch, we could incur additional charges. Our current assessment as to the collectability of these receivables takes into account the current economic conditions in Russia and Ukraine, although we will continue to monitor the situation," Boeing said in the report.
The shareholders of the Sea Launch consortium, which was created in 1995 to carry out commercial satellite launch from the sea launch site in the Pacific Ocean, were Boeing Commercial Satellite Company with 40%, RSC Energia with 25%, Ukrainian-based Yuzhnoye (Pivdenne) Bureau and state-run enterprise Yuzhmash (Pivdenmash) with a combined share of 15%, Norway's Aker SAS with 20%.
In June 2009, when the financial crisis was on, the company lodged a statement with the U.S. court on protection from creditors.
In its annual report for 2011. Boeing reported that its accounts receivables in the project are $356 million ($147 million is a bank guarantee paid by Boeing and $209 million is a combined loan from partners). In particular, RSC Energia owes $223 million and the Ukrainian co-founders owe $44 million, the report said.
In connection with Sea Launch's bankruptcy, Boeing paid a bank guarantee worth $448 million. The share of the U.S. corporation as the holder of a 40% stake in Sea Launch is $179 million. The Norwegian company paid back its $122 million (based on a 20% stake) to Boeing in 2009-2010.
After reorganization in 2010, a total of 95% of shares are now owned by Energia Overseas Limited (EOL), a 'granddaughter' of RSC Energia (Russia), while a 3% stake belongs to U.S. Boeing, 2% to Norwegian Aker Solutions. The headquarters of Sea Launch AG are in Nyon (Switzerland).