-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D6CfVr4VhXscFHkUXRQv/v+mgQxEM5Ks8tqpcSLRdsPDYpRtoH10U61mTc/CbeQV teqha6wknuLxjfMiqb/jWw== 0000899681-06-000648.txt : 20061030 0000899681-06-000648.hdr.sgml : 20061030 20061030164305 ACCESSION NUMBER: 0000899681-06-000648 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20061030 DATE AS OF CHANGE: 20061030 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: LORAL SPACE & COMMUNICATIONS INC. CENTRAL INDEX KEY: 0001006269 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 870748324 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-50103 FILM NUMBER: 061172537 BUSINESS ADDRESS: STREET 1: 600 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10016 BUSINESS PHONE: 2126971105 MAIL ADDRESS: STREET 1: 600 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10016 FORMER COMPANY: FORMER CONFORMED NAME: LORAL SPACE & COMMUNICATIONS LTD DATE OF NAME CHANGE: 19960124 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: RACHESKY MARK H MD CENTRAL INDEX KEY: 0001194368 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: NEOSE TECHNOLOGIES INC STREET 2: 102 WITMER RD CITY: HORSHAM STATE: PA ZIP: 19044 BUSINESS PHONE: 2122620005 MAIL ADDRESS: STREET 1: 40 WEST 57TH STREET, 24TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 SC 13D/A 1 loral-sc13da_103006.htm SCHEDULE 13D

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D


Under the Securities Exchange Act of 1934
(Amendment No. 2)*

                                 Loral Space & Communications Inc.                                 
(Name of Issuer)

    Common Stock, Par Value $.01 Per Share    
(Title of Class of Securities)

                      543881106                      
(CUSIP Number)

Doron Lipshitz, Esq.
Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, New York 10038
                                 (212) 806-5400                                 
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

      October 27, 2006      
(Date of Event which Requires Filing
of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box [   ].

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. Seess.240.13d-7 for other parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

Continued on following pages
Page 1 of 12 Pages

CUSIP No.: 543881106 Page 2 of 12 Pages


1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)

MHR CAPITAL PARTNERS MASTER ACCOUNT LP


2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                                                                                                     [   ] (a)
                                                                                                                                                     [X] (b)


3 SEC USE ONLY



4 SOURCE OF FUNDS (SEE INSTRUCTIONS)

WC


5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
                                                                                                                                                     [   ]


6 CITIZENSHIP OR PLACE OF ORGANIZATION

Anguilla, British West Indies


  NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
  7

8

9

10
  SOLE VOTING POWER

SHARED VOTING POWER

SOLE DISPOSITIVE POWER

SHARED DISPOSITIVE POWER
  1,040,153

0

1,040,153

0
 


11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

1,040,153


12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

                                                                                                                                                     [   ]


13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

5.2%


14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

PN


CUSIP No.: 543881106 Page 3 of 12 Pages


1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)

MHR ADVISORS LLC


2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                                                                                                     [   ] (a)
                                                                                                                                                     [X] (b)


3 SEC USE ONLY



4 SOURCE OF FUNDS (SEE INSTRUCTIONS)

AF


5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
                                                                                                                                                     [   ]


6 CITIZENSHIP OR PLACE OF ORGANIZATION

Delaware


  NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
  7

8

9

10
  SOLE VOTING POWER

SHARED VOTING POWER

SOLE DISPOSITIVE POWER

SHARED DISPOSITIVE POWER
  1,179,080

0

1,179,080

0
 


11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

1,179,080


12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

                                                                                                                                                     [   ]


13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

5.9%


14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

OO


CUSIP No.: 543881106 Page 4 of 12 Pages


1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)

MHR INSTITUTIONAL PARTNERS IIA LP


2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                                                                                                     [   ] (a)
                                                                                                                                                     [X] (b)


3 SEC USE ONLY



4 SOURCE OF FUNDS (SEE INSTRUCTIONS)

WC


5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
                                                                                                                                                     [   ]


6 CITIZENSHIP OR PLACE OF ORGANIZATION

Delaware


  NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
  7

8

9

10
  SOLE VOTING POWER

SHARED VOTING POWER

SOLE DISPOSITIVE POWER

SHARED DISPOSITIVE POWER
  2,413,827

0

2,413,827

0
 


11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

2,413,827


12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

                                                                                                                                                     [   ]


13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

12.1%


14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

PN


CUSIP No.: 543881106 Page 5 of 12 Pages


1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)

MHR INSTITUTIONAL ADVISORS II LLC


2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                                                                                                     [   ] (a)
                                                                                                                                                     [X] (b)


3 SEC USE ONLY



4 SOURCE OF FUNDS (SEE INSTRUCTIONS)

AF


5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
                                                                                                                                                     [   ]


6 CITIZENSHIP OR PLACE OF ORGANIZATION

Delaware


  NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
  7

8

9

10
  SOLE VOTING POWER

SHARED VOTING POWER

SOLE DISPOSITIVE POWER

SHARED DISPOSITIVE POWER
  3,371,959

0

3,371,959

0
 


11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

3,371,959


12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

                                                                                                                                                     [   ]


13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

16.9%


14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

OO


CUSIP No.: 543881106 Page 6 of 12 Pages


1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)

MHR INSTITUTIONAL PARTNERS LP


2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                                                                                                     [   ] (a)
                                                                                                                                                     [X] (b)


3 SEC USE ONLY



4 SOURCE OF FUNDS (SEE INSTRUCTIONS)

WC


5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
                                                                                                                                                     [   ]


6 CITIZENSHIP OR PLACE OF ORGANIZATION

Delaware


  NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
  7

8

9

10
  SOLE VOTING POWER

SHARED VOTING POWER

SOLE DISPOSITIVE POWER

SHARED DISPOSITIVE POWER
  2,119,585

0

2,119,585

0
 


11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

2,119,585


12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

                                                                                                                                                     [   ]


13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

10.6%


14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

PN


CUSIP No.: 543881106 Page 7 of 12 Pages


1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)

MHR INSTITUTIONAL ADVISORS LLC


2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                                                                                                     [   ] (a)
                                                                                                                                                     [X] (b)


3 SEC USE ONLY



4 SOURCE OF FUNDS (SEE INSTRUCTIONS)

AF


5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
                                                                                                                                                     [   ]


6 CITIZENSHIP OR PLACE OF ORGANIZATION

Delaware


  NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
  7

8

9

10
  SOLE VOTING POWER

SHARED VOTING POWER

SOLE DISPOSITIVE POWER

SHARED DISPOSITIVE POWER
  2,629,590

0

2,629,590

0
 


11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

2,629,590


12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

                                                                                                                                                     [   ]


13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

13.1%


14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

OO


CUSIP No.: 543881106 Page 8 of 12 Pages


1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)

MHR FUND MANAGEMENT LLC


2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                                                                                                     [   ] (a)
                                                                                                                                                     [X] (b)


3 SEC USE ONLY



4 SOURCE OF FUNDS (SEE INSTRUCTIONS)

AF


5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
                                                                                                                                                     [   ]


6 CITIZENSHIP OR PLACE OF ORGANIZATION

Delaware


  NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
  7

8

9

10
  SOLE VOTING POWER

SHARED VOTING POWER

SOLE DISPOSITIVE POWER

SHARED DISPOSITIVE POWER
  7,180,629

0

7,180,629

0
 


11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

7,180,629


12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

                                                                                                                                                     [   ]


13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

35.9%


14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

OO


CUSIP No.: 543881106 Page 9 of 12 Pages


1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON (ENTITIES ONLY)

MARK H. RACHESKY, M.D.


2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                                                                                                     [   ] (a)
                                                                                                                                                     [X] (b)


3 SEC USE ONLY



4 SOURCE OF FUNDS (SEE INSTRUCTIONS)

AF


5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEM 2(d) or 2(e)
                                                                                                                                                     [   ]


6 CITIZENSHIP OR PLACE OF ORGANIZATION

United States of America


  NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH
  7

8

9

10
  SOLE VOTING POWER

SHARED VOTING POWER

SOLE DISPOSITIVE POWER

SHARED DISPOSITIVE POWER
  7,180,629

0

7,180,629

0
 


11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

7,180,629


12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

                                                                                                                                                     [   ]


13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

35.9%


14
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

IN; HC


           This Statement on Schedule 13D (this "Statement") further amends and supplements, as Amendment No. 2, the Schedule 13D filed on November 30, 2005 (the "Original Schedule 13D"), which was amended on October 19, 2006 by Amendment No. 1 to the Original Schedule 13D ("Amendment No. 1" and, together with the Original Schedule 13D, the "Schedule 13D") and relates to shares of common stock, par value $0.01 per share (the "Shares"), of Loral Space & Communications Inc. (the "Issuer"). Capitalized terms used in this Statement but not defined herein shall have the respective meanings given to such terms in Amendment No. 1.

Item 4. Purpose of Transaction

           Item 4 is hereby amended to add the following:

           In connection with the recently announced equity financing transaction between the Issuer and Fund Management and the execution of the Purchase Agreement as further described in Amendment No. 1, on October 27, 2006, the Issuer made a request to Fund Management to consider proposing to the Issuer an alternative to such financing transaction that would include the participation of all interested shareholders of the Issuer. The Issuer notified Fund Management that this request was prompted by recent expressions of interest by certain shareholders of the Issuer in participating in the Issuer’s financing plans. Fund Management is pleased with the interest shown by other shareholders of the Issuer and it is currently considering the Issuer’s request. Fund Management has informed the Issuer that it is currently considering the Issuer's request and that its response to this request will be forthcoming.

           Except as otherwise set forth in this Statement, none of the Reporting Persons currently has additional plans or proposals which relate to or which would result in any of the actions or transactions described in paragraphs (a) through (j) of Item 4 of the instructions to Schedule 13D. However, from time to time the Reporting Persons may evaluate the possibility of disposing of or acquiring Shares, or entering into various corporate transactions involving the Issuer. The Reporting Persons reserve the right to formulate plans or proposals regarding the Issuer or any of its securities and to carry out any of the actions or transactions described in paragraphs (a) through (j) of Item 4 of the instructions to this Schedule 13D, to the extent deemed advisable by the Reporting Persons.

           From time to time each of the Reporting Persons may lend portfolio securities to brokers, banks or other financial institutions. These loans typically obligate the borrower to return the securities, or an equal amount of securities of the same class, to the lender and typically provide that the borrower is entitled to exercise voting rights and retain dividends during the term of the loan. From time to time, to the extent permitted by applicable law, each of the Reporting Persons may borrow securities, including the Shares, for the purpose of effecting, and may effect, short sale transactions, and may purchase securities for the purpose of closing out short sale positions in such securities.

SIGNATURES

           After reasonable inquiry and to the best of my knowledge and belief, the undersigned certifies that the information set forth in this Statement is true, complete and correct.

Date: October 30, 2006 MHR CAPITAL PARTNERS MASTER ACCOUNT LP

By: MHR Advisors LLC,
       its General Partner


By: /s/ Hal Goldstein           
Name: Hal Goldstein
Title: Vice President


MHR ADVISORS LLC


By: /s/ Hal Goldstein           
Name: Hal Goldstein
Title: Vice President

MHR INSTITUTIONAL PARTNERS IIA LP


By: MHR Institutional Advisors II LLC,
       its General Partner


By: /s/ Hal Goldstein           
Name: Hal Goldstein
Title: Vice President


MHR INSTITUTIONAL ADVISORS II LLC


By: /s/ Hal Goldstein           
Name: Hal Goldstein
Title: Vice President


MHR INSTITUTIONAL PARTNERS LP

By: MHR Institutional Advisors LLC,
       its General Partner


By: /s/ Hal Goldstein           
Name: Hal Goldstein
Title: Vice President

MHR INSTITUTIONAL ADVISORS LLC


By: /s/ Hal Goldstein           
Name: Hal Goldstein
Title: Vice President


MHR FUND MANAGEMENT LLC


By: /s/ Hal Goldstein           
Name: Hal Goldstein
Title: Vice President


MARK H. RACHESKY, M.D.


By: /s/ Mark H. Rachesky           

-----END PRIVACY-ENHANCED MESSAGE-----