SEC Filings
NYSE: LOR
January 31, 2003
LORAL SPACE & COMMUNICATIONS LTD (LOR)
form 8-K
Item 5. Other Events.
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Space Systems/Loral, Inc. ("SS/L"), a subsidiary of Loral Space & Communications Ltd. ("Loral"), was a party to an Operational Agreement with Alcatel Space Industries, pursuant to which the parties had agreed to cooperate on certain satellite programs, and an Alliance Agreement with Alcatel Space (together with Alcatel Space Industries, "Alcatel"), pursuant to which Alcatel had certain rights with respect to SS/L. The agreements between Alcatel and SS/L were terminable on one year's notice, and, on February 22, 2001, Loral gave notice to Alcatel that they would expire on February 22, 2002.
In April 2001, Alcatel commenced an arbitration proceeding challenging the effectiveness of Loral's notice of termination and asserting various alleged breaches of the agreements by SS/L relating to the exchange of information and other procedural or administrative matters. In February 2002, the arbitral tribunal issued a partial decision, which upheld the validity of Loral's termination effective February 22, 2002 and Alcatel's claims as to certain breaches. The partial decision was confirmed by the District Court for the Southern District of New York on June 25, 2002. The arbitral tribunal has provided both parties with an opportunity to file any additional claims or counterclaims they may have. In March 2002, Alcatel submitted additional claims against Loral and SS/L and is seeking at least $350 million in damages in respect of all of its claims.
On January 27, 2003, Loral and SS/L received from the arbitral tribunal a partial decision on the additional claims and counterclaims. The arbitral tribunal ruled in favor of Alcatel on most of its claims alleging breaches of the Operational Agreement or Alliance Agreement and ruled against Loral and SS/L on the counterclaims. The arbitral tribunal set a schedule for further submissions by the parties and for hearings to be held in May 2003 to determine whether any of the breaches caused Alcatel to suffer injury and to determine the amount of damages, if any. If the arbitral tribunal finds that Alcatel has sustained damages, there could be a material adverse effect on Loral's consolidated financial position and results of operations.
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Recent filings: Jan 07, 2002 (form8-K) | Jan 09, 2002 (form8-K) | Jan 10, 2002 (form8-K) | Mar 29, 2002 (Annual Rpt) | Apr 08, 2002 (form8-K) | May 15, 2002 (Qtrly Rpt) | Jun 06, 2002 (form8-K) | Aug 06, 2002 (form8-K) | Aug 14, 2002 (Qtrly Rpt) | Aug 27, 2002 (form8-K) | Sep 24, 2002 (form8-K) | Sep 25, 2002 (form8-K) | Oct 15, 2002 (form8-K) | Nov 14, 2002 (Qtrly Rpt) | Jan 31, 2003 (form8-K)
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