Loral said in its 10-Q it won’t need additional financing to fund...
Loral said in its 10-Q it won’t need additional financing to fund further operations: “We anticipate using excess cash flows from operations to populate our available slots with new satellites to meet market demand.” The company entered Ch. 11…
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bankruptcy protection in July (CD July 16 p6). Loral still plans to reorganize around its manufacturing operations and international satellite fleet for service in Southeast Asia, the Middle East and S. America. Loral didn’t provide an estimate of how long reorganization would take. Meanwhile, Loral reported an $80 million loss for first quarter 2004, an increase from a loss a year ago of $48 million. Total revenue decreased to $103 million from $155 million in first quarter 2003. The company also said it reached a settlement with ChinaSat and China Great Wall Industry Corp. (CGWI) in April resolving disputes between the companies concerning Loral’s delay in delivering a launch vehicle for the ChinaSat 8 launch. Loral is manufacturing the launcher and satellite. The settlement would release claims ChinaSat may have had against Loral, or Loral against CGWI, for payments made in connection with the launcher. Loral said it hasn’t received State Dept. licenses that would allow it to export the launcher and the satellite to China: “Delays in obtaining the necessary licenses and technical assistance agreements have in the past resulted in, and may in the future result in, the delay of [Space System/Loral’s (SS/L)] performance on its contracts, which could result in the cancellation of contracts by its customers.” Despite the settlement, Loral said ChinaSat can still cancel the contract with Loral, and may still seek a refund of $81.6 million for the satellite, plus $6.5 million in penalties. Loral said it doesn’t “believe that ChinaSat is entitled to such a refund or penalties and would vigorously contest any such claims by ChinaSat. If the ChinaSat 8 contract were terminated, SS/L estimates that it would incur costs of approximately $38 million to refurbish and retrofit the satellite.”