Sirius XM says it doesn’t expect satellite radio service to be affected by unwanted SXM-7 events
(RTTNews) – Sirius XM Holdings Inc. (SIRI) said it successfully launched its SXM-7 satellite on December 13, 2020, and in-orbit testing of the satellite began on January 4, 2021.
In a regulatory filing, the company said that during in-orbit testing of SXM-7, certain events occurred that caused certain SXM-7 payload units to fail.
The company added that an assessment of the SXM-7 is ongoing and the full extent of damage to the SXM-7 is not yet known.
Sirius XM has stated that it does not expect its satellite radio service to be affected by these SXM-7 adverse events. The company’s XM-3 and XM-4 satellites continue to operate and are expected to support its satellite radio service for several years. In addition, the company’s XM-5 satellite remains available as a spare in orbit. Construction of the SXM-8 satellite is underway and the satellite is expected to launch into geostationary orbit later this year.
Sirius XM said it has purchased insurance policies covering SXM-7 until launch and the first year of in-orbit operation and that the overall coverage under those insurance policies is $ 225 million.
The company has notified the underwriters of these policies of a potential claim regarding SXM-7.
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