After SpaceX Blast, Israeli Satellite Firm Struggles to Keep Deal With Chinese

An explosion on the launch site of a SpaceX Falcon 9 rocket is shown in Cape Canaveral, Florida September 1, 2016.

DPA – The Israeli company whose satellite was destroyed when the SpaceX rocket carrying it into orbit exploded is set to receive more than $200 million in compensation, the firm said in a filing on Sunday.

SpaceCom’s Amos 6 satellite was lost on Thursday when the SpaceX Falcon 9 rocket exploded on its launch pad in Florida during a test run.

SpaceX explodes due to ‘static fire anomaly’

Israel Aerospace Industries (IAI), which built the satellite, is on the hook for at least $173 million in damages. When interest is included SpaceCom will receive $205 million from IAI, according to SpaceCom’s filing with the Tel Aviv Stock Exchange.

SpaceCom also plans to seek $50 million from SpaceX, founded in 2002 by Tesla Motors’ Elon Musk. In a statement Friday, SpaceX, which seeks to be the first to offer passenger flights into space, said that it had launched an investigation into the explosion. 

SpaceCom will also get back money it paid to insure the Amos-6 satellite in orbit. It added that once it receives its compensation, it will be able to pay off bondholders $232 million they are owed, Reuters said.

SpaceX CEO Elon Musk poses by the Dragon V2 spacecraft in Hawthorne, California May 29, 2014.Reuters

The satellite had been partially leased by Facebook for its project to bring more Internet access to less developed countries. The destroyed device was meant for use over Africa. 

SpaceCom was scrambling Sunday to ensure an August 24 deal to be bought by China-based Xinwei went through after seeing its shares plummet following the explosion, according to media reports.

from Department of Private Space Inc.