Spacecom’s Stock Crashes 40+ Percent After Falcon 9 Accident

Credit: Tel Aviv Stock Exchange
Credit: Tel Aviv Stock Exchange

Spacecom’s stock has crashed more than 40 percent after its Amos-6 communications satellite was destroyed in a SpaceX launch pad accident in Florida on Thursday.

Quoting a statement the company released to the Tel Aviv Stock Exchange and Israel Securities Authority, Jerusalem Online reports that Spacecom will demand $205 million in compensation from Israel Aerospace Industries (IAI), which built the satellite, and $50 million from SpaceX, whose Falcon 9 rocket exploded with Amos-6 on board.

The Times of Israel reports that IAI will pay the money from an insurance policy it purchased on the satellite.

In addition, the Israeli company said it expects to receive either $50 million from SpaceX or “have the launch of a future satellite carried out under the existing agreement and with the payments that have [already] been made.”

Additional insurers are expected to pay SpaceCom an additional $39 million, the company said in a statement Saturday night.

However, SpaceCom’s future is far from certain….

The launchpad explosion could also jeopardize a pending deal for the sale of the private Israeli firm to China’s Xinwei group, reportedly worth $285 million and conditional on the satellite successfully entering service, the Israel Space Agency (ISA) said Friday.

SpaceX is continuing to investigate the cause of the accident, which CEO Elon Musk began with a fire in the upper stage that caused an explosion. The rocket was being fueled for a pre-flight static fire of its first stage engines in preparation for a scheduled Sept. 3 launch.