XM Not Successful in Insurance Arbitration Claim - Radio World

XM Not Successful in Insurance Arbitration Claim

XM Not Successful in Insurance Arbitration Claim
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An insurance setback for XM.
The satellite company will get no more insurance money to cover a gap between what it received in compensation for defective solar arrays on its Boeing satellites, and the total sum insured for XM-1 and XM-2.
The company reached agreement for 80% of the aggregate sum insured. This was in connection with the progressive solar array power degradation issue common to the first six Boeing 702 class satellites launched into orbit.
XM told the SEC the settlement represented “a total recovery of approximately $142 million from these insurers.”
In August 2004, it had filed for arbitration to collect the remaining 20% of the insured sum. XM says it has been notified that its arbitration was not successful in its claim against the remaining insurers, and it will not receive further insurance proceeds for the solar panel degradation issue.

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