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):
                                  June 29, 1998

                        LORAL SPACE & COMMUNICATIONS LTD
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


      Islands of Bermuda              1-14180                   13-3867424
- ----------------------------   ------------------------   ----------------------
(State or other jurisdiction   (Commission File Number)       (IRS Employer 
of incorporation)                                         Identification Number)


       600 Third Avenue, New York, New York                10016
      ----------------------------------------           ----------
      (Address of principal executive offices)           (Zip Code)

               Registrant's telephone number, including area code:
                                 (212) 697-1105







Item 5.  Other Events.
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                  On June 29, 1998, Loral Space & Communications  Ltd. ("Loral")
completed  the public  offering  (the  "Offering")  of 23 million  shares of its
common  stock   (including  3  million   shares  issued  upon  exercise  of  the
underwriters'  over-allotment  option) at $27.00 per share.  The net proceeds of
the  Offering  were $602  million,  of which Loral used $175 million to fund the
Globalstar  Purchase  (as  described  below) and the  remainder  of which  Loral
intends to use for  general  corporate  purposes,  including  investment  in its
existing core businesses,  to pursue emerging  satellite  service  opportunities
worldwide and for possible acquisitions.

                  On July 6, 1998,  Loral  completed  the purchase of 30% of the
limited  partnership  interests of  Globalstar,  L.P.  ("Globalstar")  (i.e. 4.2
million  partnership  interests in the aggregate  corresponding  to 16.8 million
shares of common stock of Globalstar Telecommunications Limited ("GTL")) held by
the  founding  strategic  partners of  Globalstar  for $420 million in cash (the
"Globalstar Purchase"),  or the equivalent of $25 per share of GTL common stock.
The strategic partners participating in the transaction are reinvesting one half
of the proceeds ($210 million in the aggregate) in the Globalstar System for the
purchase of Globalstar  gateways and user terminals.  Loral used $175 million of
Offering  proceeds to finance the Globalstar  Purchase and the remaining balance
of $245 million was provided through the concurrent sale by Loral of 8.4 million
shares of GTL common stock (the "Soros  Investment") that Loral owned to persons
or  entities  advised  by  or  associated  with  Soros  Fund  Management  L.L.C.
("Soros").

                  After giving effect to the Globalstar Purchase,  Loral's fully
diluted ownership in Globalstar  increased from  approximately 38% to 42%, after
giving effect to the Soros  Investment.  Soros  acquired from Loral,  in lieu of
Globalstar limited partnership interests,  shares of GTL common stock, which are
restricted  for U.S.  securities  law purposes,  and for which GTL has agreed to
file a  shelf  registration  statement  and  have  such  registration  statement
declared effective within one year.  Accordingly,  Soros paid to Loral a premium
of  $4.1667  per share of GTL  common  stock over the price paid by Loral in the
Globalstar Purchase.




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                                   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.
                                    (Registrant)

Date: July 6, 1998                  By: /s/ Eric J. Zahler
                                       ------------------------------
                                           Eric J. Zahler
                                       Vice President, General 
                                       Counsel and Secretary




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