spacetoday.net: Loral submits reorganization plan

Posted: Fri, Aug 20, 2004, 10:36 AM ET (1436 GMT)

Satellite operator and manufacturer Loral announced Thursday that it has submitted a reorganization plan that will allow the company to exit from Chapter 11 bankruptcy protection by the end of the year. The plan, filed with a federal bankruptcy court in New York, would create a reorganized company called New Loral, which would maintain both the satellite operator, Loral Skynet, and the satellite manufacturer, Space Systems/Loral, as separate subsidiaries. The new company would be owned by existing creditors and bondholders, but existing shareholders would receive nothing. New Loral would again be a public company with its shares listed on an unnamed "major" stock exchange. Loral entered Chapter 11 last year, weighed down by debt associated with its investment in Globalstar as well as a weak overall satellite communications market.