Loral's equity holders win official committee

By Ellen Chang

Houston, March 28 - Loral Space & Communications Ltd.'s equity holders will be represented by an official committee, according to the Office of the U.S. Trustee in a Thursday filing.

Although the trustee did not give an explanation, the announcement comes after shareholder Tony Christ and The Loral Stockholders Protective Committee renewed their request for official representation in the Chapter 11 case in response to indications the company's financial status is improving and a report by independent examiner Harrison Goldin that found the company's reorganization plan undervalues Loral by $281 million to $463 million - although that latter claim has been challenged by the company.

While the company's management has said it is insolvent, Christ said the shareholders appear to have a "real economic interest."

Even based on the stock price at the time of his filing of $0.17 per share, the company has a market capitalization of $7.5 million.

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 three times before.

Loral, a New York-based satellite company, filed for bankruptcy on July 15, 2003. Its Chapter 11 case number is 03-41710.

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