Loral shareholder tries again for official shareholder committee

By Ellen Chang

Houston, March 15 - A Loral Space & Communications Ltd. shareholder is renewing his request for an official shareholder's committee in response to indications that the company's financial status is improving and an independent report saying the company's reorganization plan understates its value.

Tony Christ, a Falls Church, Va.-based shareholder who is a member of The Loral Stockholders Protective Committee, filed a motion with the new request in the U.S. Bankruptcy Court for the Southern District of New York Tuesday.

Christ said he is asking the court again to approve creating an official committee after an investigation by court-appointed examiner Harrison Goldin said the company's reorganization plan undervalues the company by $281 million to $463 million. Goldin's report was filed Monday.

Though the company's management has said it is insolvent, Christ estimates there is a market capitalization of $7.5 million, or $0.17 per common share.

He also said the company has shown signs of a "significant turnaround" since it filed for Chapter 11 including the sale of six satellites with an estimated value of $800 million to $1 billion, a satellite that was completed ahead of schedule and a $225 million satellite liability that was eliminated.

In all, the committee holds a 9% equity stake in Loral, a New York-based satellite maker.

The protective committee has asked for a shareholders' committee thrice before.

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

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