A US COURT has allowed foreign investors in start-up firm Devas Multimedia to seize $87,457 from the bankrupt US satellite firm Intelsat as part of efforts to recover compensation of over $1.2 billion from Antrix, the commercial arm of the Indian Space Research Organisation, for the cancellation of a 2005 satellite deal.
Three Mauritius-based investors in Devas Multimedia have been attempting to seize funds at Intelsat that has outstanding dues payable to Antrix through proceedings in the US federal court for the Eastern district of Virginia Intelsat Service and Equipment, a US company. Under the bankruptcy proceedings in the Eastern District of Virginia, Intelsat owes the Isro commercial arm $146,457 and $87,457 is the amount that the firm has shown as being available for seizure by the foreign investors in Devas Multimedia.
The Mauritius investors in Devas Multimedia — Devas Employees Mauritius, Telecom Devas Mauritius, and CC/Devas Mauritius — are attempting to seize the assets linked to Antrix in the US to enforce a $1.2-bilion compensation award made in favour of Devas Multi- media by an International Chamber of Commerce (ICC) on September 14, 2015, for cancellation of a 2005 satellite deal by India in 2011.
The ICC order was confirmed by the US court for the western district of Washington in October 2020.
In a recent order, the US court for the eastern district of Virginia rejected a plea by Intel- sat to stay the efforts by Devas Multimedia investors to seize its assets to recover dues of Antrix. The court subsequently on July 29 asked Intelsat to hand over a cheque for $87,457 to Devas Multimedia America, the US arm of Devas.
Under the failed 2005 Antrix-Devas deal, the Isro arm was supposed to lease two communication satellites for 12 years at a cost of `1.67 billion to Devas Multimedia.