SES, Intelsat Bring Rival Motions to Dismiss
SES and Intelsat asked U.S. Bankruptcy Judge Keith Phillips of Richmond for summary judgment in SES' $1.8 billion claim against Intelsat regarding the breakup of the C-Band Alliance as part of Intelsat's Chapter 11 proceeding (see 2007140029). Evidence during discovery…
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shows that Intelsat, "in a desperate, calculated act of betrayal," intentionally breached CBA's agreement with SES to be able to claim an additional $421 million promised to SES, SES said in a motion for summary judgment Wednesday (in Pacer, docket 20-32299). The plain language forbade Intelsat's unilateral termination, SES said. It said when it and Intelsat received word in January 2020 that the FCC C-band clearing order would allocate proceeds individually based on an agency methodology, SES and Intelsat agreed to prepare a draft filing asking to accelerate payments to CBA so that it could then allocate them under the pact. It said that filing was never submitted due to objections of another CBA member. SES said it's entitled to punitive damages because Intelsat "willfully and intentionally breached its fiduciary duties." Intelsat said CBA and its members told the FCC the alliance exists strictly for carrying out the band-clearing approach it was advocating. With the FCC going a different route, making the accord inapplicable, SES "now seeks to cast itself as a jilted bride .... entitled to half of everything that [Intelsat] earns on its own pursuant to the FCC’s order." It said SES "flagrantly abused the discovery process, using scorched-earth tactics to seek soundbites ... in an apparent effort to make a splash in the trade press and besmirch its key competitor."