EX-12 2 y08776exv12.htm EX-12: COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES EXHIBIT 12
 

Exhibit 12
LORAL SPACE & COMMUNICATIONS LTD., A DEBTOR IN POSSESSION
COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES
                   
    Three Months Ended
    March 31,
     
    2005   2004
         
    (In thousands)
    (Unaudited)
Loss from continuing operations before income taxes, equity losses in affiliates and minority interest
   $ (23,766 )   $ (67,504 )
Plus fixed charges:
                
 
Interest expense
     978       395  
 
Interest component of rent expense(1)
     1,570       1,891  
Less: capitalized interest
     —       (957 )
             
Earnings available to cover fixed charges
     (21,218 )     (66,175 )
Fixed charges
     (2,548 )     (2,286 )
             
Deficiency of earnings to cover fixed charges
   $ (23,766 )   $ (68,461 )
             
 
(1)  The interest component of rent expense is deemed to be approximately 25% of total rent expense.