Bernie finally squeezes Lockheed out. Now with the 'overhang' cleared, there is no where to go but up!
Jeff Vayda
Lockheed dumps stake in Loral Space
Toronto Star 08/08/03
author: Bloomberg
Copyright (c) 2003 The Toronto Star
NEW YORK - Lockheed Martin Corp., which bought a stake in Loral Space & Communications Ltd. for $344 million (U.S.) seven years ago, has sold
its remaining holding in the insolvent satellite maker for less than $750,000.
Lockheed, the second-largest maker of commercial satellites, owned 10 per cent of Loral Space and is an unsecured creditor, Lockheed said in a
regulatory filing. The shares were sold on the open market after June 30, Lockheed spokesperson Jeff Adams said.
Loral Space filed for Chapter 11 bankruptcy protection on July 15, citing a collapse in telecommunications investment. The value of Lockheed's investment
in New York-based Loral Space had been reduced to $3 million by the end of last year from $393 million at the end of 1999, James Ryan, Lockheed's
vice- president of investor relations, said in an interview last month.
Loral Space is also seeking $40 million in refunds from Lockheed for cancelled launch service contracts, Adams said. Bethesda, Md.-based Lockheed
said the claim is without merit and would have no impact on operations or cash flow.
Lockheed acquired its Loral Space stake in 1996 as part of its $9.1 billion purchase of Loral Corp., a maker of radar and defence electronics. In that
transaction, Lockheed bought all of Loral except its satellite operations, which became part of a new company, Loral Space & Communications. At the
time, Lockheed invested $344 million for 20 per cent of Loral Space.
Loral Space is the third-largest U.S. satellite maker behind Boeing Co. and Lockheed.
The commercial satellite industry has been in its worst slump in 40 years because of the collapse of space-based communications companies, including
Iridium LLC and Teledesic LLC.
Lockheed booked no profit or loss from its passive investment in Loral Space, Ryan said last month.
Lockheed's space systems business, which includes satellites, accounted for 20 per cent of the company's total sales of $7.71 billion in the second quarter |
