Loral Space and Communications Ltd. announced July 25 that the U.S. Bankruptcy Court for the Southern District of New York confirmed the company’s reorganization plan, opening the door for Loral to emerge from bankruptcy in the fourth quarter.

Under the terms of the reorganization plan, Loral will emerge as a public company under its current management, will seek listing on Nasdaq and its two businesses – satellite manufacturing (Space Systems/Loral (SS/L)) and satellite services (Loral Skynet) – will emerge intact as separate subsidiaries of the reorganized Loral Space & Communications. Additionally, SS/L will emerge debt-free.

Loral said its general unsecured creditors, including the trade creditors, of SS/L and Loral Spacecom will be paid in full, with interest, from the petition date. Loral Orion unsecured creditors will receive approximately 77 percent of new Loral common stock and their pro rata share of $200 million of preferred stock, to be issued by Loral Skynet. Loral bondholders and certain other unsecured creditors will receive approximately 23 percent of the common stock in the reorganized Loral. Loral’s existing common and preferred stock will be canceled and distribution will be made to the holders of such stock.

Loral still has some regulatory and other conditions to satisfy, including obtaining approval for the plan from the U.S. Federal Communications Commission.