Orbital Imaging settles dispute, will allow exit from Chapter 11

By Carlise Newman

Chicago, Sept. 15 - Orbital Imaging Corp. said it reached a settlement agreement with MacDonald Dettwiler & Associates Ltd. regarding its remaining marketing rights in the Canadian Radarsat-2 satellite program.

The Dulles, Va.-based satellite operator said resolution of the dispute will enable it to finalize its plan of reorganization and emerge from its Chapter 11 bankruptcy case.

In exchange for payments totaling $12 million over the next 2 years, Orbital agreed to end its dispute and return its limited licenses in Radarsat-2 back to MacDonald Dettwiler, the prime contractor for the program.

Under the terms of the settlement agreement, Orbital will receive $10 million from MacDonald Dettwiler, and another $2 million over the next two years.

Orbital Imaging said it hopes to obtain approval for its reorganization plan by the end of October.

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