An arbitration panel has rejected mobile satellite services operator Globalstar's claims against its satellite contractor, Thales Ale-nia Space, in a ruling that the two companies announced May 16 and 17, respectively. The decision of the American Arbitration Association, which apparently came earlier in the week, deals a serious blow to Globalstar's already delicate financial position. In addition to finding that Globalstar is not entitled to demand that Thales Alenia Space build more satellites under the favorable terms of a previous contract, the arbitrators ordered Globalstar to pay its prime contractor 53 million euros ($69 million) in contract termination charges by June 9.
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