Loral gets final approval for $20 million DIP financing

By Jeff Pines

Washington, April 14 - Loral Space & Communications Ltd.'s Space Systems/Loral Inc. subsidiary obtained final approval for its $20 million debtor-in-possession financing through JPMorgan Chase Bank, according to an April 13 order from the U.S. Bankruptcy Court for the District of Southern New York.

Space Systems/Loral designs and manufactures satellites.

The proceeds will be used to keep the company's workers' compensation benefit plans in line with state requirements and for general business purposes.

The facility matures on April 6, 2006 and the interest rate will be the Federal Funds effective rate. The letter of credit fee is 25 basis points.

The company filed for bankruptcy on July 15, 2003. Loral's Chapter 11 case number is 03-41710.

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