Breaking News: Loral Prospects Rise
The business prospects for a restructured Loral Space & Communications Ltd. [LRLSQ] appear “very good,” said Patrick Fuhrmann, an independent satellite analyst. Its plan to emergence from Chapter 11 protection now awaits approval from a judge with the U.S. Bankruptcy Court for the Southern District of New York. Representatives of Loral and its creditors’ committee agreed to the reorganization plan last week and company officials expressed optimism that the entire Chapter 11 process could be completed by year-end.
Under the plan, Loral would be publicly traded and its two businesses, Space Systems/Loral (SS/L) and Loral Skynet, will operate as separate subsidiaries of the reorganized parent company. The plan also calls for SS/L to be debt-free and for common stock of the reorganized parent to be owned by Loral bondholders, Loral Orion bondholders and other unsecured creditors. In addition, existing common and preferred stock for Loral will be canceled and no distribution will be made to those shareholders.