Hughes Electronics Corp. disclosed in a Securities and Exchange Commission
filing Tuesday that it has settled a several-year-old contractual dispute with
General Electric Capital Corp. for $180 million.
As a result, the company expects to report a second-quarter-2002 pretax
charge of about $37 million in interest expense.
The dispute dates back to a July 31, 1995, contract between GECC and Hughes
subsidiary DirecTV Inc. in which GECC agreed to create a private-label
credit-card program for customers of the direct-broadcast satellite service. In
the contract, Hughes agreed to guarantee DirecTV's performance in the
In July 2000, a jury ruled in favor of GECC, awarding $133 million in damages
plus interest, but DirecTV and Hughes appealed the decision.
Hughes said it would pay the settlement to GECC this month.