SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
September 19, 2003
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LORAL SPACE & COMMUNICATIONS LTD.
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(Exact name of registrant as specified in its charter)
Islands of Bermuda 1-14180 13-3867424
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
c/o Loral SpaceCom Corporation
600 Third Avenue, New York, New York 10016
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(212) 697-1105
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On July 15, 2003, Loral Space & Communications Ltd. and certain of its
subsidiaries filed voluntary petitions for reorganization under Chapter 11 of
Title 11 of the United States Code in the United States District Court for the
Southern District of New York and parallel insolvency proceedings in the Supreme
Court of Bermuda in which certain partners of KPMG were appointed as joint
provisional liquidators.
Item 5. Other Events.
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On September 19, 2003, Loral Space & Communications Ltd. (the "Company")
announced that its Skynet division's Telstar 4 satellite experienced a short
circuit of its primary power bus that caused the satellite to cease operations.
Loral Skynet immediately made capacity available to most Telstar 4 customers on
its Telstar 5 and Telstar 6 satellites. On September 22, 2003, the Company
announced that Telstar 4 was a total loss. The satellite is insured for $141
million.
Telstar 8, currently under construction at Space System/Loral, will, in any
event, replace Telstar 4, as originally planned, in mid-2004.
Telstar 4 is among the six satellites that certain subsidiaries of the
Company (collectively, the "Sellers") have agreed to sell to Intelsat, Ltd. and
Intelsat (Bermuda), Ltd. (together, the "Purchasers") pursuant to a previously
announced Asset Purchase Agreement ("Asset Purchase Agreement"). The Company
does not believe that a total loss of Telstar 4 that is covered by insurance
would constitute a material adverse change or otherwise relieve the Purchasers
of any of their obligations under the Asset Purchase Agreement. The purchase
price payable under the Asset Purchase Agreement will be reduced by any net
insurance payments received by the Sellers prior to the closing.
The Asset Purchase Agreement remains conditioned on the conclusion of an
auction by the bankruptcy court in the Sellers' bankruptcy cases, the business
being sold continuing to meet certain operating parameters, receipt of the
approval of the Federal Communications Commission and certain other closing
conditions typical for transactions of this type. There can be no assurance that
the transaction will be consummated.
Copies of the press releases issued by the Company on September 19, 2003
and September 22, 2003 are included as
Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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(c) Exhibits.
Exhibit 99.1 Press Release of Loral Space &
Communications Ltd. dated September 19, 2003
Exhibit 99.2 Press Release of Loral Space &
Communications Ltd. dated September 22, 2003
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Loral Space & Communications Ltd.
By: /s/ Janet Yeung
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Name: Janet Yeung
Title: Vice President and
Assistant Secretary
Date: September 23, 2003
EXHIBIT INDEX
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Exhibit Description
Exhibit 99.1 Press Release of Loral Space &
Communications Ltd. dated September 19, 2003
Exhibit 99.2 Press Release of Loral Space &
Communications Ltd. dated September 22, 2003