SECURITIES AND EXCHANGE COMMISSION


                             Washington, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT

                       PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934



                Date of Report (Date of earliest event reported):
                               September 20, 2002
                         -----------------------------


                                LORAL ORION, INC.
                     --------------------------------------
             (Exact name of registrant as specified in its charter)

Delaware                            0-22085                  52-2008654
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(State or other                    (Commission             (IRS Employer
jurisdiction of                   File Number)              Identification
incorporation)                                              Number)


                 500 Hills Drive, Bedminster, N.J.         07921
                 --------------------------------------------------
                 (Address of principal executive offices) (Zip Code)


               Registrant's telephone number, including area code:
                                  (908)470-2300
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Item 5.  Other Events.
         ------------

         On September 20, 2002, Loral Orion, Inc. ("Loral Orion" or the
"Registrant") entered into an agreement with APT Satellite Company Limited
("APT") pursuant to which Loral Orion would participate on a 50-50 basis in the
ownership of the APSTAR-V satellite.

         Loral Orion's purchase price for its 50% interest in the satellite is
$115.1 million, representing 50% of the current estimated cost (the "Project
Cost") of constructing, launching and insuring the APSTAR-V satellite, which
purchase price would be adjusted if the actual Project Cost should be greater or
lesser than $230.2 million. Pursuant to Loral Orion's agreement with APT, Loral
Orion will pay prior to launch $57.55 million for 13.5 transponders on the
satellite. Subject to certain acceleration rights on the part of Loral Orion,
the remaining balance of $57.55 million for the remaining transponders will be
paid in four annual installments as follows: on the second anniversary of the
satellite's in-service date, $10.66 million for 2.5 additional transponders; on
the third anniversary of the satellite's in-service date, $12.79 million for
three additional transponders; and on each of the fourth and fifth anniversaries
of the satellite's in-service date, $17.05 million for four additional
transponders. Title to the transponders will pass to Loral Orion upon its
payment therefor. In addition to the purchase price described above, Loral Orion
has agreed to bear the cost of modifying the footprint of its Ku-band beam on
the satellite.

         Under manufacture by Space Systems/Loral, Inc. ("SS/L"), APSTAR-V will
operate a total of 54 transponders, comprised of 24 standard C-band
transponders, 14 extended C-band transponders and 16 Ku-band transponders. Under
this transaction, Loral Orion will obtain title to 12 standard C-band, 7
extended C-band and 8 Ku-band transponders on APSTAR V, which capacity will be
designated Telstar 14. Loral Orion will also have the option to enter into
similar arrangements with APT on replacement satellites upon the end of life of
APSTAR-V.

         To be located at 138 degrees East Longitude, APSTAR-V is currently
scheduled to be launched in the third quarter of 2003 and will be capable of
providing Ku-band voice, video and data services to China, India and East Asia,
and broadbeam C-band services throughout the Asia-Pacific region, including
Australia and Hawaii. To ensure a timely launch of APSTAR-V, Loral Orion, APT
and SS/L have agreed that, if a U.S. license to launch APSTAR-V on board a
Chinese Long March rocket has not been secured by September 30, 2002, a Western
launch provider will be used.




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                                   SIGNATURES


                  Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.


                                            Loral Orion, Inc.


                                            By:/s/ Janet T. Yeung
                                               ---------------------------
                                               Name: Janet T. Yeung
                                               Title: Vice President and
                                               Assistant Secretary



Date: September 23, 2002

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