Monday, November 21, 2005

Loral Emerges From Chapter 11

Loral Space & Communications completed its financial reorganization and emerged from the Chapter 11 process. Loral exits chapter 11 with approximately $180 million in cash. During the chapter 11 reorganization, Loral did not require any debtor-in-possession (DIP) financing, and, as of its emergence from chapter 11, has only $126 million of debt in the form of the notes issued by Loral Skynet. Loral Skynet has also issued $200 million of preferred stock to certain creditors of Loral Orion.

Space Systems/Loral (SS/L) is a leading manufacturer of commercial satellites.

Loral Skynet's fleet is positioned to serve areas with high growth potential such as Asia, Europe, Latin America, the Middle East and the trans-Atlantic market. Skynet has also expanded its services beyond traditional FSS leases with the introduction of new IP-based data services.

Loral's new XTAR joint venture has been awarded contracts for service to the U.S. State Department and the Spanish Ministry of Defense.

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