EX-12 2 y11521exv12.htm EX-12: COMPUTATION OF DEFICIENCY OF EARNINGS EX-12
 

Exhibit 12
LORAL SPACE & COMMUNICATIONS LTD., A DEBTOR IN POSSESSION
COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES
                   
    Six Months Ended
    June 30,
     
    2005   2004
         
    (In thousands)
    (Unaudited)
Loss from continuing operations before income taxes, equity income (losses) in affiliates and minority interest
   $ (39,983 )   $ (125,366 )
Plus fixed charges:
                
 
Interest expense
     2,448       788  
 
Interest component of rent expense(1)
     3,026       4,115  
Less: capitalized interest
     —       (957 )
             
Earnings available to cover fixed charges
     (34,509 )     (121,420 )
Fixed charges
     (5,474 )     (4,903 )
             
Deficiency of earnings to cover fixed charges
   $ (39,983 )   $ (126,323 )
             
 
(1)  The interest component of rent expense is deemed to be approximately 25% of total rent expense.