DirecTV executives commented on EchoStar's effort to purchase satellites under construction for its service from bankrupt Loral, saying the competitor's move is not an issue.
Reports surfaced last week that EchoStar is targeting the construction and delivery of three satellites that Space Systems/Loral has for DirecTV. EchoStar has said bankruptcy laws and procedures allow for the sale of a satellite in the factory at the time of bankruptcy to the highest bidder, something that compelled the bid for the assets being built for its small dish rival.
Robert Hall, DirecTV's senior vice president of business affairs and general counsel, said EchoStar's offer will ultimately be rejected. "We expect Loral to accept our contract, and we expect the court will approve it," he said.
Next week, the bankruptcy court handling Loral's case will consider the matter.
DirecTV 7S, the next satellite to join DirecTV's fleet and one of the birds EchoStar was targeting in its efforts, is still expected to launch sometime in the first quarter, executives said.
