Loral Space & Communications Ltd. [LRLSQ] and certain of its subsidiaries today filed a proposed reorganization plan with the U.S. Bankruptcy Court for the Southern District of New York, and the company now plans to emerge from Chapter 11 protection by the end of the year.

The plan provides, among other things, that Loral’s two businesses, Space Systems/Loral (SSL) and Loral Skynet, will emerge intact as separate subsidiaries of the reorganized Loral; that SSL will emerge debt-free; that the common stock of the reorganized Loral will be owned by Loral bondholders, Loral Orion bondholders and other unsecured creditors; that the reorganized Loral will emerge as a public company; and that the existing common and preferred stock will be canceled, as no distribution will be made to current shareholders.

The plan, negotiated between Loral and its creditors’ committee, is subject to confirmation by the court.