Loral Space & Communi-cations Ltd. [LRLSQ] is likely to emerge from Chapter 11 bankruptcy protection under its current management during the first quarter of next year.

The process advanced when Loral and the creditors’ committee agreed to revise the terms of a proposed plan of reorganization that will be filed with the court by Oct. 22. It includes revised terms from the plan previously filed with the court Aug. 19.

Under the new plan, Loral’s two businesses — satellite manufacturing unit Space Systems/Loral and satellite-operating unit Loral Skynet — will emerge intact as separate subsidiaries of an organization to be called New Loral. Space Systems/Loral would emerge debt-free. New Loral would be a public company and will seek listing on a major stock exchange.

The common stock of New Loral will be owned by Loral bondholders, Loral Orion bondholders and certain other unsecured creditors.

The deal is subject to resolution of certain other issues.