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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Vayda who wrote (10666)	3/17/2004 6:10:57 PM
From: Wally Mastroly	Respond to of 10852

Loral Hopes to Emerge From Chapter 11 Wednesday March 17, 4:06 pm ET -Associated Press Loral Space Hopes to Emerge From Chapter 11 Bankruptcy Protection by End of Year WASHINGTON (AP) -- Despite strained talks with creditors, satellite-maker Loral Space & Communications Ltd. hopes to emerge from Chapter 11 bankruptcy protection by the end of the year, the company's chairman and chief executive Bernard Schwartz said Wednesday. ADVERTISEMENT The New York-based company reached a milestone in its reorganization Tuesday when the U.S. Bankruptcy Court in Manhattan gave final approval to amendments to the company's sale of its North American satellite operations to Intelsat Ltd., which should smooth the closing. The bankruptcy court Tuesday also granted Loral an extension of its exclusive period to file a turnaround plan through July 12, as it had requested. In an interview, Schwartz said the company is still a few months away from filing a plan to reorganize around its remaining operations. Under the Bankruptcy Code, the exclusive period gives a debtor company the sole right to file a reorganization plan for its assets, preventing creditors from filing competing plans. Extensions are common in large Chapter 11 cases. Loral is in regular talks with its creditors. Schwartz said he'd like to say the talks were going well, but there is some tension between creditors and management. The committee of unsecured creditors in the case has objected to Loral's request for more exclusivity, saying the value of the Intelsat deal fell by $170 million, the company's Telstar 4 satellite failed in orbit and other problems have arisen since its July 2003 bankruptcy filing. The creditors committee said Loral hasn't had any meaningful talks with the committee regarding plan terms, and its business plan wasn't realistic. After adjustments, the sale of the six North American satellites to Intelsat will bring Loral $982 million, plus a $50 million deposit on a satellite it is building for Intelsat, according to Schwartz. The sale is expected to close within the next 36 hours, he said. The company plans to retain six other satellites in orbit above other parts of the world, as well as its satellite building business, the company's annual report said. Loral is working with Intelsat staff to ensure no interruption of service for its customers, the executive said. He added that it has been providing training to Intelsat, and Intelsat has hired Loral's satellite tracking, telemetry and control unit to provide additional services for at least six months. The funds from the Intelsat deal will go toward paying off $970 million in bank loans, Schwartz said. Following that, Loral will still have outstanding debt from bonds that total $1 billion. Loral filed for Chapter 11 bankruptcy protection July 15, 2003, saying it wanted to trim its debt and sell its North American satellites.

To: Jeff Vayda who wrote (10666)	3/18/2004 7:04:18 AM
From: Jeff Vayda	Read Replies (2) \| Respond to of 10852

Intelsat completes acquisition of Loral satellites INTELSAT NEWS RELEASE Posted: March 17, 2004 Intelsat, Ltd. today announced that it has completed its acquisition of the North American satellites and related customer contracts of Loral Space & Communications Corporation. The $961.1 million purchase enhances Intelsat's global market position by adding full coverage of North America to the Intelsat fleet and expanding its customer base in the broadcasting, cable television and corporate networking segments. Upon the closing, Intelsat paid $961.1 million in cash for the assets acquired under the purchase agreement with Loral. This price reflects performance-related and other adjustments to the $1.025 billion base purchase price set forth in the asset purchase agreement. In connection with the closing, and related to the failure last year of the Telstar 4 satellite, Intelsat was assigned Loral's rights to receive insurance proceeds (net of currently expected warranty payments) of up to $140 million, which would further reduce the total consideration for these assets. "The addition of the Loral assets fulfills key strategic priorities for building our business," said Conny Kullman, Chief Executive Officer of Intelsat. "These satellites enhance our worldwide network coverage and immediately establish us as a serious competitor in the North American video market." Mr. Kullman continued, "Our focus now is on providing a seamless and efficient transition for all Loral customers that we have acquired. These assets are an excellent fit with our existing network, and we expect the transition to move smoothly. With this acquisition complete, Intelsat is now able to provide reliable, one-stop shopping for broadcasters or other companies needing to connect from or to almost any point on Earth." In addition to adding prime North American coverage to the Intelsat fleet, the assets add important Ku-band capacity to serve Latin America, further enhancing Intelsat's global, end-to-end satellite and land-based network. The four in-orbit satellites and one satellite under construction that Intelsat has acquired have been renamed as noted below, with the orbital designation to remain in degrees West. Intelsat has also acquired rights to use the 77ºW orbital location. Location: New Name: Old Name: 97 W Intelsat Americas 5 or IA-5 Telstar 5 93 W Intelsat Americas 6 or IA-6 Telstar 6 129 W Intelsat Americas 7 or IA-7 Telstar 7 121 W Intelsat Americas 13 or IA-13 Telstar 13 To be launched in the third quarter of 2004: 89 W Intelsat Americas 8 or IA-8 Telstar 8 Communications operations and customer support will now be managed by Intelsat, with support from Loral for a six-month transition period. Command and control of the Intelsat Americas satellites will be transitioned to Intelsat's satellite control center over the next 12 to 18 months. About Intelsat Building on 40 Years of Leadership. As a global communications leader with 40 years of experience, Intelsat helps service providers, broadcasters, corporations and governments deliver information and entertainment anywhere in the world, instantly, securely and reliably. Intelsat's global reach and expanding solutions portfolio enable customers to enhance their communications networks, venture into new markets and grow their businesses with confidence.