NASA deal may save satellite company. (Columbia Communications) (Brief Article)

Broadcasting & Cable, July, 1993 by Scully, Sean

Independent satellite company Columbia Communications has dodged what seemed certain bankruptcy by restructuring its satellite lease deal with NASA.

Columbia had leased transponder space on NASA's Tracking and Data Relay Satellites for an annual payment of $10.7 million, said Columbia's Senior Counsel Ken Gross. In the wake of the company's failure to make its second annual payment, due in December 1992, NASA agreed last week to a revenue-sharing arrangement, under which NASA will get a percentage of Columbia's revenue. Gross didn't say how much the revenue sharing will produce for NASA, but the acknowledged it would be less than the regular lease payments, at least at first.

The deal with NASA runs four more years, and if Columbia's business...

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