July 24, 2004

Loral Reaches Agreement With Creditors' Committee on Terms of Consensual Plan of Reorganization

"Thursday July 22, 8:07 am ET
All Business Units Expected to Emerge Debt-Free From Chapter 11 by Year End
NEW YORK, July 22 /PRNewswire-FirstCall/ -- Loral Space & Communications Ltd. announced that it has reached an agreement with the Official Committee of Unsecured Creditors in its chapter 11 reorganization on the principal terms of a plan of reorganization that will lead to the early filing of a consensual plan for Loral and an exit from chapter 11 proceedings by the end of the year. The agreement provides for a reorganization that will leave Loral under current management, with its two businesses, Space Systems/Loral and Loral Skynet, intact and substantially debt-free. Loral will be a public company upon emergence and expects to be listed on a major exchange in due course"
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I found this interesting:

"It is contemplated that under the plan of reorganization, all other pre-petition general unsecured creditors will be offered an option to elect either a discounted cash payment or a payout over time."

I wonder how much the cash payment will be discounted ($.05 on th $1.00)?

Business Credit Insurance

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