Loral release
NEW YORK – November 22, 2005 – Loral Space & Communications Inc. today
announced that it has officially concluded its reorganization and has
successfully emerged from chapter 11.
Bernard L. Schwartz, Loral's chairman and chief executive officer, said:
“Loral has reached an important milestone with its emergence from
chapter 11. It is a great triumph for the men and women of our
workforce, who stayed focused on their jobs, upheld our high
manufacturing and service standards and kept Loral in the forefront of
the industry.
“Over the last two-and-a-half years, we have created a stronger, leaner
and more efficient Loral. We have won new awards and customers, and we
continue to seek and capture opportunities in many new and traditional
markets. We are confident that the momentum we have built will benefit
all our constituents.”
Throughout the chapter 11 process, Space Systems/Loral (SS/L) remained
the premier manufacturer of commercial satellites, increasing its market
share and winning more than a third of the dollar value of all contracts
awarded over the last 18 months, more than any other commercial
satellite manufacturer. Loral Skynet's fleet is well-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.
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.
Members of Loral's new board of directors, in addition to chairman and
CEO Bernard L. Schwartz and non-executive vice chairman Michael B.
Targoff, are Sai S. Devabhaktuni, Hal Goldstein, John D. Harkey Jr.,
Robert B. Hodes, Dean Olmstead, Mark H. Rachesky and Arthur L. Simon.
In accordance with the Plan of Reorganization, the company is issuing 20
million shares of new common stock in Loral Space & Communications Inc.
to certain of its creditors. Loral's prior common and preferred stock
was cancelled as of November 21, 2005 with no distribution made to
holders of such stock.
When shares of the new Loral Space & Communications Inc. common stock
are distributed, they will begin trading on the NASDAQ market under the
ticker “LORL.” Loral Space & Communications Inc. common stock is
currently trading as a “when-issued” stock on the over-the-counter (OTC)
market under the ticker “LRALV.”
Business Segments
Satellite Manufacturing – Space Systems/Loral
Space Systems/Loral's backlog at the end of the third quarter was $902
million, compared with $399 million a year earlier. Since the beginning
of Loral's reorganization in July 2003, Space Systems/Loral has received
orders for nine satellites from seven separate customers, more than any
other manufacturer during the same time period. Orders came from a wide
variety of service providers: FSS operators, mobile telephony providers,
digital audio radio service (DARS) and direct-to-home service providers,
including leading operators such as DIRECTV, EchoStar, Intelsat,
PanAmSat and XM Satellite Radio. SS/L has delivered and launched nine
satellites over the last 24 months.
Satellite Services – Loral Skynet
Loral Skynet had a backlog of $502 million at the end of the third
quarter versus $529 million a year earlier. During the last two years,
Loral Skynet shifted its focus from primarily a fixed satellite services
operator to a full-service communications solutions provider with hybrid
space/terrestrial capabilities. Skynet's fleet of satellites
strategically positioned around the globe in combination with its
terrestrial communications resources can provide customers with one-stop
connectivity. In addition, Skynet shares resources with Loral‘s XTAR
joint venture, allowing each to cross-market capacity to governments
around the world.
Copies of Loral's Plan of Reorganization, as confirmed, and Disclosure
Statement are available on the Loral website at www.loral.com . The
documents also are available via the court's website, at
www.nysb.uscourts.gov . Please note that a PACER password is required to
access documents on the Bankruptcy Court's website. Loral's bankruptcy
case number is 03-41710 (RDD).
Loral Space & Communications is a satellite communications company. It
owns and operates a fleet of telecommunications satellites used to
broadcast video entertainment programming, distribute broadband data,
and provide access to Internet services and other value-added
communications services. Loral also is a world-class leader in the
design and manufacture of satellites and satellite systems for
commercial and government applications including direct-to-home
television, broadband communications, wireless telephony, weather
monitoring and air traffic management. For more information, visit
Loral's web site at www.loral.com .
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