##### Table of Contents





UNITED STATES SECURITIES AND EXCHANGE
COMMISSION
 Washington, D.C. 20549
      Form 10-K/A
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007
  o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission file number 1-14180
 LORAL SPACE & COMMUNICATIONS INC.
 (Exact name of registrant specified in the charter)
 Jurisdiction of incorporation: Delaware
 IRS identification number: 87-0748324
 600 Third Avenue
New York, New York 10016(Address of principal executive offices)
Telephone: (212) 697-1105
 (Registrants telephone number, including area code)
 Securities registered pursuant to Section 12(b) of the Act:
 Title of each class
    
    Name of each exchange on which registeredCommon stock, $.01 par value
    
    NASDAQ
 Securities registered pursuant to Section 12(g) of the Act:
 Indicate by check mark if the registrant is well-known seasoned issuer, as defined in Rule 405
of the Securities Act.   Yes o No þ
 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. Yes o No þ
 þ o
 Form 10-K þ o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o þ
   þ o
  Part and Item Number ofDocument
    
    Form 10-K into which incorporatedLoral Notice of Annual Meeting of
Stockholders and Proxy Statement forthe
Annual Meeting of Stockholders held
May 20, 2008
    
    Part II, Item 5 (d)
Part III, Items 11 through 14




---





TABLE OF CONTENTS  EXPLANATORY NOTEPART IVItem 15. Exhibits and Financial Statement SchedulesINDEX TO EXHIBITSSIGNATURESEX-23.3: CONSENT OF DELOITTE & TOUCHE LLPEX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32.1: CERTIFICATIONEX-32.2: CERTIFICATION    Table of Contents  
 EXPLANATORY NOTE
   23.3
    
    Consent of Deloitte & Touche LLP31.1
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.Except
    
    as specifically indicated herein, no other information included in our Annual Report
on Form 10-K is amended by this Amendment on Form 10-K/A.
 
 PART IV
 
 Item 15.  Exhibits and Financial Statement Schedules
  Separate Financial Statements of Subsidiaries not consolidated Pursuant to Rule 3-09 of Regulation S-XXTAR LLC:Report of Independent Registered Public Accounting Firm
    
    
    F-111Consolidated Balance Sheets as of December 31, 2007 and 2006
    
    
    F-112Consolidated
Statements of Operations for the years ended December 31, 2007,
2006 and 2005 (unaudited)
    
    
    F-113Consolidated Statements of Members Equity for the years ended December 31, 2007, 2006 and 2005 (unaudited)
    
    
    F-114Consolidated Statements of Cash Flows for the years ended December 31, 2007, 2006 and 2005 (unaudited)
    
    
    F-115Notes to Consolidated Financial Statements
    
    
    F-116




---



##### Table of Contents





INDEX TO EXHIBITS
 ExhibitNumber
    
    Description23.3
    
    Consent of Deloitte & Touche LLP31.1
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. §
1350, as adopted pursuant to § 302 of the Sarbanes-Oxley Act of
200231.2
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. §
1350, as adopted pursuant to § 302 of the Sarbanes-Oxley Act of
200232.1
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. §
1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of
200232.2
    
    Certification of Chief Financial Officer pursuant to 18 U.S.C. §
1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of
2002
 
 
    
    Filed herewith.




---



##### Table of Contents





SIGNATURES
  LORAL SPACE & COMMUNICATIONS INC.By:
    /s/ Michael B. TargoffMichael B. TargoffVice Chairman of the Board,
Chief Executive Officer and PresidentDated: August 11, 2008  Signatures
    
Title
    
DateVice Chairman of the Board, Chief
    
    August 11, 2008/s/
MICHAEL B. TARGOFF
Michael B. Targoff
    
    Executive Officer and PresidentDirector, Non-Executive Chairman of theMark H. Rachesky, M.D.
    
    BoardDirectorSai S. DevabhaktuniDirector/s/
HAL GOLDSTEIN
Hal Goldstein
    
    
    
    August 11, 2008DirectorJohn D. Harkey, Jr.Director
    
    August 11, 2008/s/
ARTHUR L. SIMON
Arthur L. SimonDirector
    
    August 11, 2008/s/
JOHN P. STENBIT
John P. StenbitSenior Vice President and CFO
    
    August 11, 2008/s/
HARVEY B. REIN
Harvey B. Rein
    
    (Principal Financial Officer)Vice President and Controller
    
    August 11, 2008/s/
JOHN CAPOGROSSI
John Capogrossi
    
    (Principal Accounting Officer)




---



##### Table of Contents







REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
    /S/  DELOITTE
& TOUCHE LLP  
 F-111




---



##### Table of Contents



XTAR, L.L.C.
 
 CONSOLIDATED BALANCE SHEETS
(in thousands)
 December 31,
    
    
    December 31,2007
    
    
    2006ASSETSCurrent assets:Cash
    
    $
    1,810
    
    
    $
    3,091Accounts receivable, net
    
    
    6,624
    
    
    
    2,595Other current assets
    
    
    465
    
    
    
    717Total current assets
    
    
    8,899
    
    
    
    6,403Property, plant and equipment, net
    
    
    115,538
    
    
    
    125,248Other assets, net
    
    
    461
    
    
    
    469Total assets
    
    $
    124,898
    
    
    $
    132,120LIABILITIES AND MEMBERS EQUITYCurrent liabilities:Accounts payable
    
    $
    177
    
    
    $
    321Accrued employment costs
    
    
    517
    
    
    
    431Income taxes payable
    
    
    55
    
    
    
    21Note payable
    
    
    
    
    
    
    5,754Customer advances
    
    
    75
    
    
    
    462Current portion of Arianespace Incentive
    
    
    1,544
    
    
    
    Payable to related parties
    
    
    27,286
    
    
    
    13,156Total current liabilities
    
    
    29,654
    
    
    
    20,145Term loan
    
    
    13,632
    
    
    
    12,603Other long-term liabilities
    
    
    21,154
    
    
    
    20,493Total liabilities
    
    
    64,440
    
    
    
    53,241Members equity:Loral Skynet Corporation
    
    
    33,919
    
    
    
    Loral Skynet International LLC
    
    
    
    
    
    
    44,235Hisdesat
    
    
    26,539
    
    
    
    34,644Total members equity
    
    
    60,458
    
    
    
    78,879Total liabilities and members equity
    
    $
    124,898
    
    
    $
    132,120
  F-112




---



##### Table of Contents



XTAR, L.L.C.
 
 CONSOLIDATED
STATEMENTS OF OPERATIONS(in thousands)
 Year Ended December 31,2007
    
    
    2006
    
    
    2005(unaudited)Revenues from satellite services
    
    $
    12,999
    
    
    $
    8,416
    
    
    $
    2,870Related party revenues from satellite services
    
    
    6,340
    
    
    
    6,918
    
    
    
    6,573Total revenues
    
    
    19,339
    
    
    
    15,334
    
    
    
    9,443Cost of satellite services
    
    
    29,689
    
    
    
    20,735
    
    
    
    11,674Selling, general and administrative expenses
    
    
    4,072
    
    
    
    3,232
    
    
    
    3,194Operating loss
    
    
    (14,422
    )
    
    
    (8,633
    )
    
    
    (5,425
    )Interest and investment income
    
    
    182
    
    
    
    150
    
    
    
    153Interest expense
    
    
    3,308
    
    
    
    3,496
    
    
    
    3,376Other income (expense), net
    
    
    (313
    )
    
    
    (134
    )
    
    
    32Loss before taxes
    
    
    (17,861
    )
    
    
    (12,113
    )
    
    
    (8,616
    )Income tax provision
    
    
    560
    
    
    
    516
    
    
    
    986Net loss
    
    $
    (18,421
    )
    
    $
    (12,629
    )
    
    $
    (9,602
    )
  F-113




---



##### Table of Contents



XTAR, L.L.C.
 
 CONSOLIDATED STATEMENTS OF MEMBERS EQUITY
(in thousands)
 HisdesatLoral Space &
    
    
    Space
    
    
    Loral Skynet
    
    
    
    
    
    
    ServiciosCommunications
    
    
    Systems/
    
    
    International
    
    
    Loral Skynet
    
    
    Estrategicos,Corporation
    
    
    Loral
    
    
    LLC
    
    
    Corporation
    
    
    S.A.
    
    
    TotalBalance January 1, 2005 (unaudited)
    
    $
    26,861
    
    
    $
    22,469
    
    
    $
    
    
    
    $
    
    
    
    $
    38,648
    
    
    $
    87,978Additional capital contributions
(unaudited)
    
    
    
    
    
    
    7,354
    
    
    
    
    
    
    
    
    
    
    
    5,778
    
    
    
    13,132Net loss  for the period January 01, 
2005
to November 21, 2005 (unaudited)
    
    
    (2,327
    )
    
    
    (1,344
    )
    
    
    
    
    
    
    
    
    
    
    (2,885
    )
    
    
    (6,556
    )(Sale)/purchase of membership interests
(unaudited)
    
    
    (24,534
    )
    
    
    (28,479
    )
    
    
    53,013
    
    
    
    
    
    
    
    
    
    
    
    Net loss  for the period November 22,
2005 to December 31, 2005 (unaudited)
    
    
    
    
    
    
    
    
    
    
    (1,706
    )
    
    
    
    
    
    
    (1,340
    )
    
    
    (3,046
    )Balance December 31, 2005 (unaudited)
    
    
    
    
    
    
    
    
    
    
    51,307
    
    
    
    
    
    
    
    40,201
    
    
    
    91,508Net loss
    
    
    
    
    
    
    
    
    
    
    (7,072
    )
    
    
    
    
    
    
    (5,557
    )
    
    
    (12,629
    )Balance December 31, 2006
    
    
    
    
    
    
    
    
    
    
    44,235
    
    
    
    
    
    
    
    34,644
    
    
    
    78,879Net loss  for the period January 1,
2007 to October 31, 2007
    
    
    
    
    
    
    
    
    
    
    (7,577
    )
    
    
    
    
    
    
    (5,954
    )
    
    
    (13,531
    )(Sale)/purchase of membership interests
    
    
    
    
    
    
    
    
    
    
    (36,658
    )
    
    
    36,658
    
    
    
    
    
    
    
    Net loss  for the period November 1,
2007 to December 31, 2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,739
    )
    
    
    (2,151
    )
    
    
    (4,890
    )Balance December 31, 2007
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    33,919
    
    
    $
    26,539
    
    
    $
    60,458
  F-114




---



##### Table of Contents



XTAR, L.L.C.
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 Year Ended December 31,2007
    
    
    2006
    
    
    2005(unaudited)Operating activities:Net loss
    
    $
    (18,421
    )
    
    $
    (12,629
    )
    
    $
    (9,602
    )Non-cash items:Depreciation and amortization
    
    
    9,747
    
    
    
    9,693
    
    
    
    7,195Non-cash interest expense
    
    
    2,464
    
    
    
    1,950
    
    
    
    2,280OtherAccretion to launch consideration payable to Arianespace
    
    
    695
    
    
    
    1,525
    
    
    
    1,070Adjustment to revenue straight-lining assessment
    
    
    (25
    )
    
    
    
    
    
    
    Changes in operating assets and liabilities:Accounts receivable and other current assets
    
    
    (3,779
    )
    
    
    (1,646
    )
    
    
    (1,378
    )Accounts payable and other current liabilities
    
    
    (2,860
    )
    
    
    631
    
    
    
    (30
    )Deferred revenue
    
    
    
    
    
    
    (2,191
    )
    
    
    2,191Income taxes payable
    
    
    34
    
    
    
    (6
    )
    
    
    23Long-term liabilities
    
    
    1,511
    
    
    
    605
    
    
    
    Payable to related parties
    
    
    12,695
    
    
    
    8,432
    
    
    
    1,861Net cash provided by operating activities
    
    
    2,061
    
    
    
    6,364
    
    
    
    3,610Investing activities:Capital expenditures
    
    
    (2
    )
    
    
    
    
    
    
    (19,548
    )Financing activities:Hisdesat term loan
    
    
    
    
    
    
    
    
    
    
    10,787Notes payable repayments
    
    
    (3,340
    )
    
    
    (8,960
    )
    
    
    (3,500
    )Equity contribution  Loral
    
    
    
    
    
    
    
    
    
    
    7,354Equity contribution  Hisdesat
    
    
    
    
    
    
    
    
    
    
    5,778Net cash provided by (used in) financing activities
    
    
    (3,340
    )
    
    
    (8,960
    )
    
    
    20,419Net (decrease) increase in cash and cash equivalents
    
    
    (1,281
    )
    
    
    (2,596
    )
    
    
    4,481Cash and cash equivalents  beginning of year
    
    
    3,091
    
    
    
    5,687
    
    
    
    1,206Cash and cash equivalents  end of year
    
    $
    1,810
    
    
    $
    3,091
    
    
    $
    5,687
  F-115




---



##### Table of Contents



XTAR, L.L.C.
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
 1. Organization and Principal Business
   2. Basis of Presentation
   3. Summary of Significant Accounting Policies
 Use of Estimates in Preparation of Financial Statements
  Cash and Cash Equivalents
  F-116




---



##### Table of Contents



XTAR, L.L.C.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
 Property, Plant and Equipment
  YearsSatellite-in-orbit
    
    
    15Earth stations
    
    
    7-15Equipment, furniture and fixtures
    
    
    3Leasehold improvement on Spainsat Transponders
    
    
    15
 Valuation of Satellite, Long-Lived Assets
 Accounting for the Impairment
or Disposal of Long-Lived Assets
 
    
    Changes in estimates of the useful life of the satellite
    
    Changes in estimates of our ability to operate the satellite at expected levels
    
    Changes in the manner in which the satellite is to be used
    
    The loss of one or several significant customer contracts on the satellite
  Revenue Recognition
  F-117




---



##### Table of Contents



XTAR, L.L.C.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
 Income Taxes
  Additional Cash Flow Information
  December 31,2007
    
    
    2006
    
    
    2005(unaudited)Supplemental information:Financed launch vehicle acquisition
    
    $
    
    
    
    $
    
    
    
    $
    12,300Capital expenditure incurred and unpaid 
Arianespace incentive cap
    
    $
    
    
    
    $
    
    
    
    $
    17,293Capital expenditure incurred and unpaid  related
parties
    
    $
    
    
    
    $
    2
    
    
    $
    562Interest paid
    
    $
    2,546
    
    
    $
    
    
    
    $
    Foreign taxes paid, net of refunds
    
    $
    524
    
    
    $
    522
    
    
    $
    963
  Net Loss Allocation
  Foreign Currency
 $ (134) and
$ 32 (unaudited), respectively.
 Comprehensive Income
  F-118




---



##### Table of Contents



XTAR, L.L.C.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
 Prospective Method of Valuing/Accreting Arianespace Incentive obligation
  4. New Accounting Pronouncements
 FIN 48
 Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109
 SFAS 157
 Fair Value Measurements
 EITF 06-3
 How Taxes Collected from Customers and Remitted to Governmental Authorities Should Be
Presented in the Income Statement (That Is, Gross versus Net Presentation)
 SFAS 159
 The Fair Value Option for Financial Assets and
Financial Liabilities
 F-119




---



##### Table of Contents



XTAR, L.L.C.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
 SFAS 160
 Non-controlling Interests in Consolidated Financial Statementsan amendment of ARB No. 51
 SFAS 141R
 Business Combinations
 5. Property, Plant and Equipment
 December 31,2007
    
    
    2006Satellite in-orbit
    
    $
    130,436
    
    
    $
    130,436Earth stations
    
    
    9,177
    
    
    
    9,177Equipment, furniture and fixtures
    
    
    387
    
    
    
    385Leasehold improvement on transponders
    
    
    2,100
    
    
    
    2,100142,100
    
    
    
    142,098Accumulated depreciation and amortization
    
    
    (26,562
    )
    
    
    (16,850
    )Property, plant and equipment, net
    
    $
    115,538
    
    
    $
    125,248
   Year2008
    
    $
    6,0492009
    
    
    2,6272010
    
    
    5632011
    
    
    580Thereafter
    
    
    
 F-120




---



##### Table of Contents



XTAR, L.L.C.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
 6. Other Assets
 December 31,2007
    
    
    2006Intangible assets:Regulatory and orbital slot
    
    $
    518
    
    
    $
    518Accumulated amortization
    
    
    (95
    )
    
    
    (60
    )Intangible assets, net
    
    
    423
    
    
    
    458Other assets
    
    
    38
    
    
    
    11Total other assets, net
    
    $
    461
    
    
    $
    469
   Year2008
    
    $
    352009
    
    
    352010
    
    
    352011
    
    
    352012
    
    
    35
 7. Note Payable
 December 31,2007
    
    
    2006Arianespace:Principal amount
    
    $
    
    
    
    $
    3,340Interest accrued and due
    
    
    
    
    
    
    2,414Total
    
    $
    
    
    
    $
    5,754
 Arianespace Launch Service Agreement
  F-121




---



##### Table of Contents



XTAR, L.L.C.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
  8. Income Taxes
    9. Related Party Transactions:
  Lease of Capacity to Hisdesat on XTAR-EUR
   F-122




---



##### Table of Contents



XTAR, L.L.C.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
 Lease Obligation to Hisdesat
  Year2008
    
    $
    23,0512009
    
    
    23,4202010
    
    
    23,7942011
    
    
    24,1752012
    
    
    24,562Thereafter
    
    
    220,069
 Operations Services Agreements with Hisdesat
  F-123




---



##### Table of Contents



XTAR, L.L.C.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
 Hisdesat Management Agreement with XTAR
  Loral Skynet Corporation/Telesat Canada Service Agreements and Arrangements with XTAR
    Loral SpaceCom Corporation Management Agreement with XTAR
  F-124




---



##### Table of Contents



XTAR, L.L.C.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
 Deferment arrangement with Hisdesat, Loral and Telesat Canada
  10. Term Loan
 Hisdesat Term Loan
  December 31,2007
    
    
    2006Principal amount
    
    $
    10,787
    
    
    $
    10,787Interest accrued
    
    
    2,845
    
    
    
    1,816Total
    
    $
    13,632
    
    
    $
    12,603
 11. Other Long Term Liabilities
   F-125




---



##### Table of Contents



XTAR, L.L.C.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, unless otherwise noted)
  December 31,2007
    
    
    2006Long-Term Liabilities:Straight-lining of Spainsat lease
    
    $
    2,116
    
    
    $
    605Arianespace Incentive Cap
    
    
    20,582
    
    
    
    19,888Less: Current portion of Arianespace Incentive Cap
    
    
    1,544
    
    
    
    Total Long-Term Liabilities
    
    $
    21,154
    
    
    $
    20,493
 12. Revenue Information
 Revenue by Customer Location
  2007
    
    
    2006
    
    
    2005(unaudited)United States
    
    $
    12,999
    
    
    $
    8,416
    
    
    $
    2,870Spain
    
    
    6,340
    
    
    
    6,918
    
    
    
    6,573$
    19,339
    
    
    $
    15,334
    
    
    $
    9,443
 13. Financial Instruments
   December 31, 2007
    
    December 31, 2006Carrying
    
    Fair
    
    Carrying
    
    FairAmount
    
    Value
    
    Amount
    
    ValueArianespace note payable
    
    $
    
    
    
    $
    
    
    
    $
    5,754
    
    
    $
    5,904Hisdesat term loan
    
    
    13,632
    
    
    
    12,723
    
    
    
    12,603
    
    
    
    12,371
 F-126