Loral Cleared for Fiscal Re-Launch

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Loral Space & Communications, which had hoped to emerge from bankruptcy by August, Tuesday said that day had finally arrived, announcing it has "successfully emerged" with $180 million in cash and $126 million in debt.

The company is also issuing $200 million in new preferred stock to some creditors, and 20 million shares of common stock to other creditors. Existing stock was cancelled as of Nov. 21.

Loral filed for chapter 11 in July 2003 and sold its North American business--five satellites--to Intelsat in March 2004 for something just north of $1 billion. That business included big-time clients CBS and Fox.

The company still has four satellites, two in Asia that service HBO Asia, Sony Entertainment, and Disney, among others; one in Brazil that supplies Internet-to-aircraft service; and one that reaches to Iraq and has been used by numerous news organizations.

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