Hughes Stays Committed To Venture

Hughes Network Systems, yesterday in a press release, said that it remains committed to its joint venture -- Hughes Ispat Ltd. While it did not issue an official denial on its pulling out of the venture, Jack Shaw, chief executive officer of Hughes Network Systems said, "We remain committed to our joint venture. It is true that difficulties in financing have arisen as a consequence of economic sanctions against India in the wake of nuclear blast.

"We invoked the force majeure clause because sanctions deprived the project of 'political risk insurance' from the US Exim Bank of $400 million offshore debt, thereby delaying the financial close indefinitely."