Loral equity committee objects to disclosure statement

By Caroline Salls

Pittsburgh, May 25 - Loral Space & Communications Ltd.'s official committee of equity security holders objected to the company's disclosure statement for its third amended plan of reorganization, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The committee said the disclosure statement fails to provide adequate information to allow investors to make an informed decision on the plan, including the debtors' valuation and the "dramatic changes" in proposed distributions to creditors from the last plan.

Also, the committee contends that the statement misstates the examiner's valuation conclusions and overestimates the amount of post-bankruptcy interest due by $221 million.

A hearing on the disclosure statement is scheduled for June 1.

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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