Attachment 2003NYS FACS ex part

This document pretains to SAT-LOA-19941116-00088 for Application to Launch and Operate on a Satellite Space Stations filing.

IBFS_SATLOA1994111600088_1018003

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                                                              pEc 0 8 2003                             Tricia Paoletta
1776 K STREET NW
                          November 24, 2003                             C                              202.719.7532
WASHINGTON, DC 20006
PHONE    202.719.7000                                         F?@flt Q'mw                               tpaoletta@wrf.com
FAX      202.719.7049                                                      RECEIVED
Virginia Office           Ms. Marlene H. Dortch, Secretary
7925 JONES BRANCH DRIVE   Federal Communications Commission                  nov 2 4 2003
SUITE 6200
                          236 Massachusetts Avenue, N.E., Suite 110    FEDERAL COMMUNICATIONS COMMISSION
McLEAN, VA 22102
PHONE    703.905.2800
                          Washington, DC 20002                               QFFICE OF THE SECRETARY
FAX      703.905.2820

                          Re:    Notice of Oral Ex Parte Presentations
                                 Final Analysis Communication Services, Inc.
www.wrf.com
                                 Petition for Waiver (filed Mar. 29, 2002);
                                 File Nos. SAT—LOA—19941116—00088;
                                 SAT—AMD—19950224—00033; SAT—AMD—19960223—00031;
                                 SAT—AMD—19960819—00107; SAT—AMD—19971030—00175


                          Dear Ms. Dortch:

                          Patricia Paoletta, counsel to New York Satellite Industries LLC ("NYS"), which
                          owns FCC licensee Final Analysis Communication Services, Inc. ("FACS"), had a
                          conversation with International Bureau Chief Don Abelson on Wednesday,
                          November 19, 2003, and with Associate Chief and Bureau Chief of Staff Jackie
                          Ruff on Thursday, November 20, 2003 on the status of FACS‘ milestone extension
                          request, filed June 6, 2003, due to unique cireumstances beyond its control.

                          Counsel reiterated that due to the involuntary Chapter 7 bankruptcy filing against
                          FAI, FACS‘ former parent, it was beyond the control of FACS, the FCC licensee, to
                          meet its 2002 milestones. The fact that FAI was both FACS®‘ parent and the prime
                          developer of its system, and was also in liquidation are unique circumstances
                          mitigating in favor of extension. FACS remained financially solvent before, during
                          and after the bankruptcy of FAI. In fact, in August 2001, FACS signed a secondary
                          payload contract for $10 million, with the $2 million installment paid to FACS in
                          September, the same month creditors of FATI filed their Chapter 7 filing.
                          Nonetheless, since FAI was the primary developer of the system, up until the close
                          of the bankruptcy proceedings, FACS was legally obligated to rely on FAI to meet
                          the milestones.

                          Counsel reiterated the circumstances beyond FACS®‘ control, including the
                          automatic stay and bankruptcy trustee prohibiting FACS from moving forward with
                          another system developer until any sale of FAI‘s assets was complete. Therefore,
                          FACS could not enter into a new system development contract with an alternative
                          provider and meet its milestones until the bankruptcy sale to NYS was complete.
                          Three days after the sale, NYS applied to the FCC for a transfer of control. The


 Wiley Rein & Fielding ur


Marlene H. Dortch, Secretary
November 24, 2003
Page 2


application to transfer of control was pending when FACS‘ March 2002 milestone
came due. FACS needed, as a matter of law, to wait for the FCC to approve the
transfer of control of FACS from the trustee to NYS, in order to register with the
State Department for approval of the Technical Assistance Agreement (TAA) with
its system developer, Russian aerospace company Polyot. The FACS registered
with the State Department, with its new owner NYS, for purposes of TAA approval,
August 19, 2002, the same day the FCC approved the transfer of control. The State
Department, with much urging by FACS, approved the TAA between FACS and
Polyot late May 2003. Prior to this State Department approval, FACS could not
provide the FCC a firm date for satellite construction, launch and operation of its
system — information required in an extension request.

Within days of the State Department‘s approval, FACS filed its extension request
with the FCC. FACS has consistently, aggressively moved forward with its sytem,
at each possible juncture. While this information is on the record already, counsel
reiterates it here, in the interest of expediting the Bureau‘s grant of FACS‘ extension
request. Counsel reiterates that there have been both unforeseeable circumstances
beyond FACS® control that prohibited it from meeting its 2002 milestones, as well
as unique circumstances mitigating in favor of extension, and that the public interest
would be served in granting a waiver of the March 2002 milestones and approving
new milestones.

                                              Sineexely,

                                                                     PM
                                              Patricia J. Paoletta
co:      Bryan Tramont
         Sheryl Wilkerson
         Sam Feder
         Jennifer Manner
         Paul Margie
         Barry Ohlson
         Don Abelson
         Jackie Ruff
         Tom Tycz
         Cassandra Thomas
         Mark Young
         Stewart Block
         Randy Sifers



Document Created: 2013-10-29 15:18:21
Document Modified: 2013-10-29 15:18:21

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