Since 2010, satellite operators with U.S. defense business have posted falling government-based revenues as American troop levels have fallen in the Middle East. As painful as the slowdown in defense business was for diversified satellite operators, it was even more acute for Xtar, a Northern Virginia venture that operates two X-band satellites whose sole business is providing secure telecommunications services to the U.S. government and its allies. In 2015, as Xtar's revenue shrank by double-digit percentages, its majority shareholder threatened to divest. Loral Space and Communications still owns 56 percent of Xtar, but told the U.S. Securities and Exchange Commission this August that it has "no commitment to provide further financial support to Xtar." That leaves Hisdesat, the Madrid-based operator that holds the balance of Xtar's private shares — and is itself owned 30 percent by the Spanish Ministry of Defence. — Caleb Henry |
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