Loral stockholder group loses bid to force debt holders to disclose trading

By Jeff Pines

Washington, May 28 - A group of Loral Space & Communications Ltd. stockholders failed in their bid to get the court to order debt holders to disclose their trading activity, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York. A hearing on the motion was held May 21.

Both the company and the official committee of unsecured creditors objected to the request from the Loral Stockholders' Protective Committee.

Led by Tony Christ, of Falls Church, Va., the committee wanted the court to take note of when bondholders acquired their securities.

If it was after the company filed for Chapter 11, the noteholders would have bought their bonds at rates far below par, expecting to be repaid at par, which he believes is unfair and a distortion of the absolute priority rule, he said. The rule allows certain classes to be compensated before others.

Christ owns 300,000 shares and is the custodian for 32,500 shares. The other shareholders in the group own 22,000 shares.

Loral filed for bankruptcy on July 15, 2003. Its Chapter 11 case number is 03-41710.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.