EX-12.1 8 y18173exv12w1.htm EX-12.1: STATEMENT RE: COMPUTATION OF RATIOS EX-12.1
 

Exhibit 12.1
LORAL SPACE & COMMUNICATIONS LTD., A DEBTOR IN POSSESSION
COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES
                                     
    Successor      
    Registrant     Predecessor Registrant
           
    For the Period     For the Period    
    October 2,     January 1,    
    2005 to     2005 to   Years Ended December 31,
    December 31,     October 1,    
    2005     2005(3)   2004   2003
                   
Loss from continuing operations before income taxes, equity income (losses) in affiliates and minority interest
   $ (5,395 )     $ (65,570 )   $ (207,852 )   $ (368,355 )
Plus fixed charges:
                                  
 
Interest expense
     4,408         3,982       3,904       28,223  
 
Interest component of rent expense(1)
     1,625         4,949       9,059       10,402  
Less: capitalized interest
     —         —       (957 )     (14,143 )
                           
Earnings available to cover fixed charges
   $ 638       $ (56,639 )   $ (195,846 )   $ (343,873 )
                           
Fixed charges(2)
   $ (8,700 )     $ (8,931 )   $ (12,963 )   $ (45,345 )
                           
Deficiency of earnings to cover fixed charges
   $ 8,062       $ 65,570     $ 208,809     $ 389,218  
                           
 
(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 our operations and the resulting impact on our effective tax rate. Fixed charges include the accrual of preferred dividends and interest on unsecured debt obligations (excluding bank debt) through July 15, 2003, the date of our Chapter 11 filing.
 
(3)  Does not reflect the effect of the gain on the discharge of pre-petition obligations and fresh-start adjustments, and the interest expense and income tax benefit recognized in connection with the Plan of Reorganization.