MA, as I have reported here a couple of times already the TrustComm deal, not ExIm directly is the elephant in the room.
Pivotal to the Exim funding arrangement is the signing up and retention of a certain level of forward contracts on Jab1 to satisfy ExIms need for security over their loan. They have been quite specific about that in the past.
Part of the forensic audit [in fact a large part] was to test every single Jab1 contract to ensure its legitimacy.
That is the only reason Newsat had such a big drive so early in the piece to sign forward customers and why they offered lucrative discounts of 30% to get that guaranteed clientelle. Without that level - no funding. Any reduction in forward contracts directly affected revenues which in turn affected the ability to repay the loan.
It is also why ExIm require to be engaged in any move by a client to leave or renegotiate.
So, to reiterate my previous posts, our fate depends on TrustComm remaining with us without much reduction in contract value or ExIm will have another condition precedent compromised. In their minds it is the main one because it is directly connected to the initial viability of Jabiru1 and hence the surety for loan repayment.
TrustComm is now crucial to the continued existence of the Jab1 project. I am sure TrustComm are very aware of that and it is a powerful negotiating tool in their quest for a new deal. It puts Newsat very much on the back foot. One has to wonder what compromises Newsat will have to make and what demands will be acceded to in order to retain their lynch pin business. I am sure that "for reasons of client confidentiality" we will never know how much of our soul we had to sell to stay on track.
We will know the outcome, if not the details, shortly.
GLTASH
Therefore while we are reliant on ExIm for the funds they will not release them until after the TrustComm matter is satisfactorily resolved in Newsats favour.
