Loral Space & Communications extends rights offering expiration to July 29

By Caroline Salls

Pittsburgh, July 1 - Loral Space & Communications Ltd. extended the expiration date of the rights offering under its plan of reorganization to 4 p.m. ET on July 29, according to an 8-K filing with the Securities and Exchange Commission.

Under the plan, holders of Loral Orion general unsecured claims can subscribe to $120 million of new Skynet notes, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Loral is proposing that its two businesses, satellite manufacturer Space Systems/Loral and satellite services provider Skynet, will emerge from the reorganization intact as separate subsidiaries of the reorganized parent company.

Loral Orion unsecured creditors include holders of its $612.704 million of 10% senior notes due 2006, $36.627 million 11¼% senior notes due 2007 and $49.071 million 12½% senior discount notes due 2007.

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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