STATEMENT RE: COMPUTATION OF RATIOS

EX-12 11 y94860exv12.htm STATEMENT RE: COMPUTATION OF RATIOS STATEMENT RE: COMPUTATION OF RATIOS

Exhibit 12

LORAL SPACE & COMMUNICATIONS LTD., A DEBTOR IN POSSESSION

COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES



		For the Years Ended December 31,

		2003			2002			2001


		(in thousands)
		(unaudited)
Loss before income taxes, equity in net losses of affiliates, minority interest, cumulative effect of change in accounting principle and extraordinary gain on acquisition of minority interest		$	(338,575	)	$	(147,354	)	$	(126,333	)
Plus fixed charges:
	Interest expense		95,823			106,861			207,027
	Interest component of rent expense⁽¹⁾		10,402			15,380			15,717
Less: capitalized interest			(34,060	)		(29,816	)		(23,097	)

Earnings available to cover fixed charges		$	(266,410	)	$	(54,929	)	$	73,314

Fixed charges⁽²⁾		$	(112,724	)	$	(211,427	)	$	(303,487	)

Deficiency of earnings to cover fixed charges		$	(379,134	)	$	(266,356	)	$	(230,173	)

⁽¹⁾ The interest component of rent expense is deemed to be approximately 25% of total rent expense.

⁽²⁾ Preferred dividends have not been adjusted for income taxes, due to the composition of the taxing jurisdictions underlying the Company’s operations and the resulting impact on the Company’s effective tax rate. Fixed charges includes the accrual of preferred dividends and interest on unsecured debt obligations (excluding bank debt) through July 15, 2003, the date of the Company’s Chapter 11 filing.


⁽¹⁾	The interest component of rent expense is deemed to be approximately 25% of total rent expense.

⁽²⁾	Preferred dividends have not been adjusted for income taxes, due to the composition of the taxing jurisdictions underlying the Company’s operations and the resulting impact on the Company’s effective tax rate. Fixed charges includes the accrual of preferred dividends and interest on unsecured debt obligations (excluding bank debt) through July 15, 2003, the date of the Company’s Chapter 11 filing.