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Loral Files Revised Plan Of Reorganization And Disclosure Statement
New York NY (SPX) Oct 26, 2004 Loral Space & Communications last Friday (October 22) filed a revised plan of reorganization (the "Plan") and a Disclosure Statement with the Bankruptcy Court. The company expects to exit chapter 11 under current management in the first-quarter of 2005. The Plan, which revises the terms of a Plan previously filed on August 19, 2004, reflects a consensual agreement on financial terms between the company and the Creditors' Committee appointed in the chapter 11 cases of Loral and certain of its subsidiaries. It is subject to final documentation and the resolution of certain other issues between the company and the Creditors' Committee and to confirmation by the bankruptcy court. It provides, among other things, that: - Loral's two businesses, Space Systems/Loral and Loral Skynet, will emerge intact as separate subsidiaries of reorganized Loral (New Loral). The Disclosure Statement establishes the enterprise value of New Loral at between approximately $650 million and approximately $800 million. - Space Systems/Loral, the satellite design and manufacturing business, will emerge debt-free. - The common stock of New Loral will be owned by Loral bondholders, Loral Orion bondholders and certain other unsecured creditors, as follows: - Loral bondholders and certain other unsecured creditors will receive approximately 19.4 percent of the common stock of New Loral. - Loral Orion unsecured creditors, including Loral Orion bondholders, will receive approximately 79.0 percent of New Loral's common stock plus $200 million in new senior secured notes to be issued by reorganized Loral Skynet. These creditors also will be offered the right to subscribe to purchase their pro-rata share of an additional $30 million in new senior secured notes to be issued by reorganized Loral Skynet. This rights offering will be backstopped by certain creditors who will receive a fee payable in the notes. - All other general unsecured creditors will have an option to elect to receive their pro rata share of approximately 1.6 percent of New Loral common stock or their pro rata share of $30 million in cash, subject to adjustment for over-subscription or under-subscription. - Existing common and preferred stock will be cancelled and no distribution will be made to current shareholders. - New Loral will emerge as a public company and will seek listing on a major stock exchange. Community Email This Article Comment On This Article Related Links Loral SpaceDaily Search SpaceDaily Subscribe To SpaceDaily Express The latest information about the Commercial Satellite Industry
Stratos Steps Closer To Xantic Acquisition
Bethesda MD (SPX) Jan 5, 2006Stratos Global recently announced it had taken a step closer toward the completion of the acquisition of Xantic, having received positive advice from the Works' Council in the Netherlands, and executed a definitive agreement to purchase Xantic from KPN and Telstra Corporation. |
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