Mr. Musk described the event as a 'fast fire' not an explosion.
Following up on last week's "A Bad Day For Elon Musk and His Insurers (TSLA; SCTY)" wherein it was pointed out that the launch insurance would not kick in and it would probably fall to a marine cargo policy to cover the losses here's more on the coverage.
From Israel's Globes business journal, Sept. 4:
Spacecom says that because the satellite was destroyed before launch, it is not claiming on its insurance policy.
Following the destruction of its Amos 6 satellite when the SpaceX rocket that was to carry it into orbit exploded on the launch pad in Cape Canaveral last week, Spacecom Satellite Communications Ltd. (TASE:SCC), controlled by notified the Tel Aviv Stock Exchange this morning that because the failure occurred before the launch, the company had not invoked the insurance policy covering the satellite. The insurance premium will be returned to the company, which will claim the cost of building the satellite from Israel Aerospace Industries (IAI).
Spacecom also states that, under the agreement it has with IAI, IAI is obliged to return to it the cost of construction of the satellite with interest at Libor plus 4% on each payment it made to IAI. Out of this, Spacecom has to repay the state $17 million. The company states that once it collects the repayments from IAI, it will be able to repay the bond series of which the bondholders now have cause to demand immediate repayment.
As for its other bond series, Spacecom says that it is abiding by all the financial covenants relating to them, and that it expects to meet all repayments on them.
Spacecom says that it is due to receive $50 million compensation from SpaceX, but that it can choose instead to use SpaceX's services for its next satellite launch without payment....MORE
And from Reuters Sept. 6:...IAI reports that it bought insurance as necessary and that to the best of its knowledge it is due to receive compensation, which it will transfer to Spacecom under the terms of the agreement with it. This means that if all goes smoothly, IAI will receive $173 million and additional costs, which will be transferred to Spacecom in accordance with its liability....
Satellite owner says SpaceX owes $50 million or free flight
Israel's Space Communication Ltd said on Sunday it could seek $50 million or a free flight from Elon Musk's SpaceX after a Spacecom communications satellite was destroyed last week by an explosion at SpaceX's Florida launch site.
Officials of the Israeli company said in a conference call with reporters Sunday that Spacecom also could collect $205 million from Israel Aerospace Industries, which built the AMOS-6 satellite.
SpaceX said in an email to Reuters that it does not disclose contract or insurance terms. The company is not public, and it has not said what insurance it had for the rocket or to cover launch pad damages beyond what was required by the Federal Aviation Administration, which oversees commercial U.S. launches, for liability and damage to government property....MORE
