A bankrupt U.S. company commissioned to build a Japanese multipurpose satellite has agreed to supply the device to Japan by the end of March, according to government officials.
Space Systems/Loral has also reached an agreement with the Meteorological Agency, as well as the Land, Infrastructure and Transport Ministry, to pay about 165 million yen in compensation to Japan for failing to supply the satellite on time, they said.
The Multifunctional Transport Satellite-1R (MTSAT-1R) was commissioned in 2000 to be built by the California-based firm to replace the aging weather satellite Himawari 5.
The U.S. company filed for bankruptcy in July to pursue rehabilitation. It called on Japan to waive compensation for the delay and pay an additional 3 billion yen for completion of the satellite.
Japan filed a claim with a U.S. federal bankruptcy court, saying the firm's demand is unacceptable.
According to the ministry and the agency, Japan has reached an agreement with the firm that Tokyo will consign it to take care of inspections and maintenance of ground control facilities after the launch of the MTSAT-1R.
However, even with the supply of the satellite in March, it is not clear when it will be launched due to the recent launch failure of a H-IIA rocket.
Meteorological Agency officials said Japan will probably continue to rely on information from a U.S. weather- observation satellite for this year's typhoon season.