Loral, Creditors Reach Agreement

Loral Space & Communications Ltd. today said it reached an agreement with the Official Committee of Unsecured Creditors in its Chapter 11 reorganization on the principle terms of a plan of reorganization that will lead to the early filing of a consensual plan for Loral to emerge from its bankruptcy proceedings. Under the proposed plan, all pre- petition institutional debt will be exchanged for all of the equity of the reorganized company, leaving Loral with its current management team intact and — with its Space Systems/Loral and Loral Skynet — substantially debt free.