Loral Space & Communications Ltd. filed a proposed plan of reorganization Thursday with the U.S. Bankruptcy Court for the Southern District of New York.
The satellite-communications company said it expects to exit Chapter 11 under current management by year-end.
Actions included in the plan:
• Loral's two businesses, Space Systems/Loral and Loral Skynet, will emerge intact as separate subsidiaries of the reorganized Loral.
• Satellite-design and manufacturing business Space Systems/Loral will emerge debt-free.
• The common stock of the new Loral will be owned by Loral bondholders, Loral Orion bondholders and other unsecured creditors. In addition, bondholders and other creditors of Loral Orion will receive an aggregate of $200 million in new senior secured notes to be issued by the reorganized Loral Skynet satellite-services subsidiary.
• The new Loral will emerge as a public company and will seek listing on a major stock exchange.
• Existing common and preferred stock will be canceled, and no distribution will be made to current shareholders.