Loral shareholder seeks creation of shareholder committee

By Jeff Pines

Washington, July 7 - A Loral Space & Communications Ltd. shareholder asked the U.S. Bankruptcy Court to create an official shareholder's committee.

Tony Christ, a Falls Church, Va.-based shareholder who is a member of The Loral Stockholders Protective Committee, filed the motion with the court Wednesday. In all, the committee holds a 3.5% stake in Loral, a New York-based satellite maker.

Christ recommends the official committee, if approved, have three preferred shareholders and three common shareholders.

Though the company's management has said it is insolvent, Christ estimates there is a stockholder value of $451 million, or $10.21 per common share.

"Certainly it is almost unheard of for a bankrupt company to not only not require debtor-in-possession financing but to have $177 million in available cash, in a recovering market," Christ said.

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

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

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