Loral Names Targoff as CEO
Rachesky to Fill Chairman Role
The Wall Street Journal 02/03/06
author: Andy Pasztor
(Copyright (c) 2006, Dow Jones & Company, Inc.)
Michael Targoff, who left Loral Space & Communications Ltd. in 1998 after being passed over for the top job, was tapped to succeed Bernard Schwartz as chief executive of the revamped New York satellite company.
But, in a move that surprised some industry officials, the New York satellite company -- now known as Loral Space & Communications Inc. -- also named Mark Rachesky, 46 years old, as nonexecutive chairman. Under Mr. Schwartz, the two titles had been merged.
In tapping Mr. Targoff, 61, Loral chose someone who has worked previously with many of its senior executives and has experience with other aspects of the telecommunications industry. He is chairman of Leap Wireless International Inc. and serves on the board of ViaSat Inc.
Mr. Rachesky is co-founder and president of MHR Fund Management LLC, which specializes in investments in distressed and deeply undervalued companies.
Mr. Schwartz, 80, is retiring March 1 after more than three decades at the helm of the company. Mr. Schwartz built Loral through acquisitions and became an important participant in the defense-industry consolidation that followed the Cold War. He more recently guided the company through a federal bankruptcy-court reorganization.
In November, Mr. Targoff was named nonexecutive vice chairman of Loral, and citing his responsibilities there he resigned as a director of two other publicly traded companies. Mr. Targoff played a big role in dealing with bondholders during Loral's Chapter 11 reorganization, and has the support of the private-equity interests that now control Loral. The rest of Loral's management team, which stayed through the 28-month reorganization effort, is expected to remain.
The company emerged from court protection and began trading again late last year, though common stockholders lost their earlier investments. Contrary to the predictions of many bankers, industry officials and Wall Street analysts, Mr. Schwartz managed to retain control of the pared-down company.
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