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Exhibit 12

LORAL SPACE & COMMUNICATIONS LTD., A
DEBTOR IN POSSESSION

COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER
FIXED CHARGES

|                                                                                                                    |                                       |                   |          |       |  |   |          |        | 
|------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | ----------------- | -------- | ----- |  | - | -------- | ------ | 
|                                                                                                                    |                                       |                  
|                                                                                                                    |                                       | Nine Months Ended
|                                                                                                                    |                                       | September 30,    
|                                                                                                                    |                                       |                  
|                                                                                                                    |                                       | 2004              |          | 2003 
|                                                                                                                    |                                       |                   |          |      
|                                                                                                                    |                                       |                  
|                                                                                                                    |                                       | (In thousands)   
|                                                                                                                    |                                       | (Unaudited)      
|Loss from continuing operations before income
    taxes, equity income (losses) in affiliates and minority interest |                                       | $                 | (157,187 | )     |  | $ | (255,628 | )     
|Plus fixed charges:                                                                                                 |                                       |                   |          |       |  |   |          |       
|                                                                                                                    | Interest expense                      |                   |          | 1,725 |  |   |          | 27,913 | 
|                                                                                                                    | Interest component of rent expense(1) |                   |          | 5,991 |  |   |          | 9,438  | 
|Less: capitalized interest                                                                                          |                                       |                   | (957     | )     |  |   | (10,226  | )     
|                                                                                                                    |                                       |                   |          |       |  |   |          |       
|Earnings available to cover fixed charges                                                                           |                                       |                   | (150,428 | )     |  |   | (228,503 | )     
|Fixed charges(2)                                                                                                    |                                       |                   | (7,716   | )     |  |   | (44,069  | )     
|                                                                                                                    |                                       |                   |          |       |  |   |          |       
|Deficiency of earnings to cover fixed charges                                                                       |                                       | $                 | (158,144 | )     |  | $ | (272,572 | )     
|                                                                                                                    |                                       |                   |          |       |  |   |          |       



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The interest component of rent expense is deemed
    to be approximately 25% of total rent expense.                                                                                                                                                                                                                                                                                                                                                               
|   
|(2) | Fixed charges include the accrual of preferred
    dividends and interest on unsecured debt obligations (excluding
    secured bank debt) through July 15, 2003, the date of our
    Chapter 11 filing. Preferred dividends for the nine months
    ended September 30, 2003 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.