Loral equity committee seeks delay in disclosure statement hearing

By Caroline Salls

Pittsburgh, May 2 - Loral Space & Communications Ltd.'s official committee of equity security holders asked for a 30-day adjournment of the scheduled May 10 hearing on the company's disclosure statement, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The committee also requested a 30-day extension of the deadline for filing objections.

In the filing, the committee said it was established one day before the hearing was set on March 30, leaving it insufficient time to review the statement, file any objections and be prepared to participate in the hearing.

Also, the committee said recent developments have further hampered its efforts to quickly get up to speed in these cases.

Specifically, the committee said that over the past two weeks Loral has publicly announced its receipt of orders for two new satellites, each valued at about $250 million.

The committee said Loral also announced an agreement to settle a substantial portion of the $250 million insurance claim related to the failure of the Telstar 14/EdS satellite, which, if approved by the court, will bring in almost $100 million in cash to the estate within a matter of weeks.

Additionally, the federal appeals court has reinstated a patent lawsuit brought by Loral against Lockheed Martin Corp., which alleges that Lockheed infringed on one of Loral's patents in connection with Lockheed's construction of 77 separate satellites.

The lawsuit could result in damages in excess of $1 million for each of the 77 allegedly infringing Lockheed satellites.

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

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