spacetoday.net: Satellite problem could jeopardize PanAmSat sale

Posted: Fri, Aug 6, 2004, 8:58 AM ET (1258 GMT)
Boeing 601 illustration (BSS)

A problem announced Thursday with a PanAmSat satellite could threaten the planned sale of the satellite operator to private equity firms. PanAmSat announced that a secondary ion thruster on its Galaxy 10R satellite failed on August 3, and that the failure was likely permanent. The primary ion thruster on the spacecraft, a Boeing model 601 HP, had already failed, forcing the spacecraft to rely on a backup system of chemical thrusters. Since the spacecraft has only enough chemical propellant to operate for about three years, the company said it will accelerate plans to replace Galaxy 10R with Galaxy 17, a satellite currently under construction as a backup for Galaxy 16, which has yet to be launched. An insurance claim will also be filed against Galaxy 10R. PanAmSat officials said that the failure has the chance of breaking a deal by PanAmSat's parent, the DirecTV Group, to sell the satellite operator to a group of private equity firms led by Kohlberg Kravis Roberts. The deal was announced earlier this year, but the agreement includes a clause that allows the buyers to back out if Galaxy 10R suffered a failure. The xenon ion propulsion system (XIPS) used on Galaxy 10R has also suffered problems on a number of other Boeing 601-class satellites.