The company blamed delays in the recommencement of $60 million debt funding –
suspended by lender Ever Tycoon in mid-2014 – for its inability to make the
payments, and said it is meeting regularly with Lockheed to remedy the contract
default.

It has between 30 and 90 days to make payments without any further
consequences, and says Lockheed is proceeding with construction in the
meantime.

However NewSat yesterday also advised the ASX and shareholders it was still
unable to draw upon the financiers’ funding. It said agreements had not been
terminated and all parties remained in “continued discussions” on how
to resolve the issues.

“NewSat, Lockheed Martin and the lenders are meeting regularly with a view
to remedy the default, agree the terms on which debt funding could recommence
and resolve all outstanding issues,” yesterday’s statement said