Inmarsat, RigNet Agree To Settle Arbitration Case - Quick Facts

(RTTNews) - Inmarsat plc (ISAT.L), a provider of mobile satellite communications services, confirmed Monday that it has entered into a $50.75 million settlement agreement with RigNet, Inc. (RNET).

The amount will be paid by RigNet to Inmarsat as full and final settlement of all claims in respect of the arbitration case at the International Centre for Dispute Resolution relating to Inmarsat's GX Take-or-Pay contract with RigNet.

The settlement will be paid in three installments, $45 million immediately, $5 million in the third quarter of 2019, and $750,000 in the third quarter of 2020.

Separately, RigNet said it recorded a non-cash litigation reserve in the fourth quarter of 2018 of $50.6 million, net of about $0.2 million of prior accruals. The Company expects no impact on second quarter 2019 earnings as a result of the settlement.