Loral files amended plan, confirmation hearing set for Jan. 31

By Jeff Pines

Washington, Dec. 6 - The confirmation hearing is Jan. 31 for Loral Space & Communications Ltd.'s second amended joint reorganization plan filed with the U.S. Bankruptcy Court for the Southern District of New York Sunday.

According to the new plan, the Loral Orion Inc. general unsecured claims would still get an estimated 60.1% recovery through a share of 8.996 million new shares and a share of $200 million of new 14% seven-year notes. There are $743.7 million in Orion claims. They will also be able to participate in a rights offering for $30 million more of new notes.

Loral general unsecured claims would get an estimated 50% recovery in new stock or a 30% recovery in cash, and general unsecured claims of the parent Loral would get an estimated recovery of about 29% in new stock.

Angelo Gordon & Co. Inc. and the ad hoc committee of Loral Ltd.'s trade creditors are on the record opposing the plan because they believe their claims are a higher priority than those of the general unsecured claims of Loral Orion but are getting a lower estimated recovery.

As for the New York-based satellite company's common and preferred stock, both will be cancelled.

Loral filed for bankruptcy on July 15, 2003. Its Chapter 11 case number is 03-41710.

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