Loral, MHR To Alter Financing Agreement
By Staff Writer | October 30, 2006
Responding to complaints from a pair of investors, Loral Space & Communications Inc. and its largest shareholder will consider alternatives to a recent equity financing deal.
Loral asked MHR Fund Management LLC for alternatives to the $300 million deal that would include the participation of all interested shareholders, and MHR has agreed to develop a response, Loral announced Oct. 27
Loral announced Oct. 17 that it would sell $300 million of stock to MHR, which was founded by Mark Rachesky, chairman of Loral’s board.
Investment firms Highland Capital Management LP and Murray Capital Management Inc. had raised concerns over the MHR deal, labeling it a "sweetheart deal" that would allow a "stealth take-over" of Loral.