Satmex mulls expanding service coverage

24 Jun 2005

Beleaguered Mexican satellite services provider Satmex is contemplating plans to extend its footprint in South America and provide coverage in Central America, according to BNamericas. Satmex has rights to provide services in 40 countries in the Americas but currently focuses its efforts on the US and Mexican markets. The operator has three orbiters in service – Solidaridad II, Satmex 5 and Morelos II – covering Canada to Argentina, and now wants to extend its business in the region. The company is currently embroiled in a bankruptcy dispute with US creditors over USD379 million of the firm’s USD523 million debt in default since 2003. Its creditors are calling for a restructuring under US bankruptcy laws, but the Mexican company is stalling amid rising speculation that it would prefer the process to take place under the provisioning of local bankruptcy legislation.