##### 



UNITED STATES SECURITIES AND
    EXCHANGE COMMISSIONWashington, D.C.
    20549
      Form 10-Q
  QUARTERLY REPORT PURSUANT TO
    SECTION 13 OR 15(d) OF THE
 SECURITIES EXCHANGE ACT OF
    1934
  For the quarterly period ended September 30, 2007
   Commission file number 1-14180
  Loral Space &
    Communications Inc.
  600 Third Avenue
 New York, New York 10016
 Telephone:
    (212) 697-1105
  Jurisdiction of incorporation: Delaware
  IRS identification number:
    87-0748324
  þ o
  Rule 12b-2
  o þ o
  þ o
  Rule 12b-2 o þ




---



##### 



PART 1.
    FINANCIAL INFORMATION
  Item 1.
    Financial
    Statements  LORAL
    SPACE & COMMUNICATIONS INC.
  CONDENSED CONSOLIDATED BALANCE SHEETS
 (In thousands, except share data)
 (Unaudited)
  September 30,


December 31,2007


2006ASSETSCurrent assets:Cash and cash equivalents

$
319,878


$
186,542Short-term investments


22,085



106,588Accounts receivable, net


13,269



76,420Contracts-in-process


100,889



40,433Inventories


86,359



82,183Restricted cash


163,607



2,869Foreign currency contracts (Note 6)


116,395



Other current assets


48,505



52,665Total current assets


870,987



547,700Property, plant and equipment, net


582,472



558,879Long-term receivables


119,104



81,164Investments in and advances to affiliates


89,988



97,202Goodwill


266,254



305,691Intangible assets, net


96,786



111,749Other assets


21,188



27,526Total assets

$
2,046,779


$
1,729,911LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable

$
76,543


$
67,604Accrued employment costs


40,479



43,797Short-term debt


141,050



Customer advances and billings in excess of costs and profits


217,360



242,661Income taxes payable


5,330



2,567Accrued interest and preferred dividends


11,549



20,097Other current liabilities (Note 6)


23,285



42,828Total current liabilities


515,596



419,554Pension and other post retirement liabilities


175,830



167,987Long-term debt






128,084Long-term liabilities


161,165



153,028Total liabilities


852,591



868,653Minority interest


237,599



214,256Commitments and contingenciesShareholders equity:Series A-1
    Cumulative 7.5% convertible preferred stock, $0.01 par
    value 2,200,000 shares authorized, 141,814 shares
    issued and outstanding


41,832



Series B-1
    Cumulative 7.5% convertible preferred stock, $0.01 par
    value 2,000,000 shares authorized, 881,353 shares
    issued and outstanding


259,908



Common stock, $.01 par value


203



200Paid-in capital


650,462



644,708Accumulated deficit


(27,989
)


(37,981
)Accumulated other comprehensive income


32,173



40,075Total shareholders equity


956,589



647,002Total liabilities and shareholders equity

$
2,046,779


$
1,729,911    1




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)
 (Unaudited)
  Three Months


Nine MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006Revenues from satellite manufacturing

$
194,925


$
175,297


$
573,929


$
467,599Revenues from satellite services


40,715



51,497



108,244



124,054Total revenues


235,640



226,794



682,173



591,653Cost of satellite manufacturing


173,392



161,786



520,520



425,986Cost of satellite services


26,966



25,397



77,505



72,683Selling, general and administrative expenses


35,216



31,045



111,001



91,154Gain on litigation settlement






(9,000
)






(9,000
)Operating income (loss)


66



17,566



(26,853
)


10,830Interest and investment income


10,497



6,880



27,708



16,439Interest expense


3,983



(8,042
)


(1,063
)


(18,705
)Unrealized gain on foreign exchange contracts (Note 6)


56,673







122,145



Other income


3,377



68



3,638



994Loss on extinguishment of debt


(16,155
)






(16,155
)


Income before income taxes, equity income (loss) in affiliates
    and minority interest


58,441



16,472



109,420



9,558Income tax provision


(23,112
)


(6,345
)


(54,877
)


(11,363
)Income (loss) before equity income (loss) in affiliates and
    minority interest


35,329



10,127



54,543



(1,805
)Equity income (loss) in affiliates


(2,322
)


(2,575
)


(4,259
)


(5,879
)Minority interest


(7,078
)


(6,366
)


(20,551
)


(18,366
)Net income (loss)


25,929



1,186



29,733



(26,050
)Preferred dividends


(5,770
)






(13,502
)


Beneficial conversion feature related to the issuance of Loral
    Series A-1
    Preferred Stock (Note 11)


(171
)






(25,575
)


Net income (loss) applicable to common shareholders

$
19,988


$
1,186


$
(9,344
)

$
(26,050
)Basic and diluted income (loss) per common share (Note 13):Basic income (loss) per share

$
0.99


$
0.06


$
(0.47
)

$
(1.30
)Diluted income (loss) per share

$
0.96


$
0.06


$
(0.47
)

$
(1.30
)Weighted average shares outstanding:Basic


20,103



20,000



20,071



20,000Diluted


21,881



20,000



20,071



20,000    2




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (In thousands)
 (Unaudited)
  Nine Months Ended September 30,2007


2006Operating activities:Net income (loss)

$
29,733


$
(26,050
)Non-cash operating items


18,575



90,684Changes in operating assets and liabilities:Accounts receivable, net


65,340



2,104Contracts-in-process


(64,507
)


12,780Inventories


(4,556
)


(15,292
)Long-term receivables


(318
)


(392
)Deposits






9,031Other current assets and other assets


(711
)


(5,919
)Accounts payable


7,997



(23,135
)Accrued expenses and other current liabilities


(24,402
)


(8,113
)Customer advances


(49,174
)


61,835Income taxes payable


2,763



3,488Pension and other postretirement liabilities


7,843



(17,597
)Long-term liabilities


9,220



12Other


(83
)


114Net cash (used in) provided by operating activities


(2,280
)


83,550Investing activities:Capital expenditures


(77,715
)


(44,313
)(Increase) decrease in restricted cash


(165,012
)


1,910Proceeds received from the disposition of an orbital slot






5,742Distribution from equity investment


2,955



Proceeds from the sale of short-term investments and
    available-for-sale securities


440,698



Purchase of short-term investments


(350,887
)


(118,656
)Net cash used in investing activities


(149,961
)


(155,317
)Financing activities:Proceeds from term loan (Skynet Notes refinancing facility)


141,050



Repayment of Loral Skynet Notes


(126,000
)


10% redemption fee on extinguishment of Loral Skynet Notes


(12,600
)


Preferred stock issuance costs


(8,866
)


Proceeds from the sale of preferred stock


293,250



Proceeds from the exercise of stock options


1,776



Cash dividends paid on preferred stock of subsidiary


(3,033
)


(1,278
)Net cash provided by (used in) financing activities


285,577



(1,278
)Net increase (decrease) in cash and cash equivalents


133,336



(73,045
)Cash and cash equivalents  beginning of period


186,542



275,796Cash and cash equivalents  end of period

$
319,878


$
202,751    3




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS
  1.
    Organization
    and Principal Business      1 3
    Satellite Manufacturing:
  Satellite Services:
  2.
    Reorganization  No. 03-41710 03-41709 03-41728
   4




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      3.
    Basis of
    Presentation    Form 10-K
  Cash
    and Cash Equivalents, Short-term Investments and Restricted
    Cash
    Concentration
    of Credit Risk
  contracts-in-process,
 5




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Minority
    Interest
      Income
    Taxes
  Accounting for Uncertainty in Income Taxes, an
    interpretation of FASB Statement No. 109
       6




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      paid-in-capital.
    Pensions
    and Other Employee Benefits
    Pension Benefits


Other BenefitsThree Months


Three MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006Service cost

$
2,412


$
2,088


$
360


$
441Interest cost


5,432



5,217



1,250



1,292Expected return on plan assets


(5,837
)


(5,689
)


(10
)


(26
)Amortization of prior service credits and net actuarial gain or
    loss


(700
)


(699
)


(75
)


(56
)$
1,307


$
917


$
1,525


$
1,651   7




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Pension Benefits


Other BenefitsNine Months


Nine MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006Service cost

$
7,236


$
8,838


$
1,080


$
1,041Interest cost


16,296



16,617



3,750



3,542Expected return on plan assets


(17,511
)


(16,539
)


(30
)


(26
)Amortization of prior service credits and net actuarial gain or
    loss


(2,100
)


(699
)


(225
)


(56
)$
3,921


$
8,217


$
4,575


$
4,501    8




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Additional
    Cash Flow Information
    Nine MonthsEnded September 30,2007


2006Non-cash operating items:Equity loss in affiliates

$
4,259


$
5,879Minority interest


20,551



18,366Deferred taxes


46,463



Depreciation and amortization


62,714



50,972Stock based compensation


13,802



2,025(Recoveries of) provisions for bad debts on billed receivables


(2,189
)


594Provisions for inventory obsolescence


380



1,678Warranty expense accruals


(10,769
)


12,355Net gain on the disposition of an orbital slot


(3,600
)


(1,149
)Write-off of construction in progress


2,011



Loss on extinguishment of debt


16,155



Amortization of prior service credits and net actuarial gain


(2,325
)


Gain on disposition of available-for-sale securities


(5,308
)


Withholding tax impact of cashless stock option exercises


(955
)


Unrealized gain on foreign exchange contracts and non cash net
    interest


(121,723
)


(36
)Other


(891
)


Net non-cash operating items

$
18,575


$
90,684Non-cash financing activities:Issuance of preferred stock by subsidiary as payment for dividend

$
23,343


$
14,260Issuance of Loral Series-1 Preferred Stock as payment for
    dividend

$
8,490


$
Accrued dividends on
    Series A-1
    and
    Series B-1
    preferred stock

$
5,013


$
Accrued dividends on preferred stock of subsidiary

$
6,102


$
Supplemental information:Capital expenditures incurred not yet paid

$
982


$
Interest paid

$
34,500


$
14,510Taxes paid, net of refunds

$
1,871


$
2,512Cash paid for reorganization items:Professional fees

$
(160
)

$
(9,581
)  9




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  New
    Accounting Pronouncements
  SFAS 157
  Fair
    Value Measurements
  SFAS 159
  The
    Fair Value Option for Financial Assets and Financial Liabilities
  4.
    Comprehensive
    Income (Loss)    Three Months


Nine MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006Net income (loss)

$
25,929


$
1,186


$
29,733


$
(26,050
)Cumulative translation adjustment


176



56



235



193Amortization of prior service credits and net actuarial gains,
    net of taxes


(469
)






(1,407
)


Unrealized gain (loss) on available-for-sale securities arising
    during the period, net of taxes


444







(3,515
)


Reclassification adjustment for gains included in net income


(4,690
)






(3,215
)


Comprehensive income (loss)

$
21,390


$
1,242


$
21,831


$
(25,857
)   Form 10-K, Employers Accounting for
    Defined Benefit Pension and Other Postretirement Plans Reporting
    Comprehensive Income Form 10-K,
 10




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  5.
    Contracts-in-Process  September 30,


December 31,2007


2006(In thousands)Amounts billed

$
40,061


$
18,289Unbilled receivables


60,828



22,144$
100,889


$
40,433   contracts-in-process
  6.
    Financial
    Instruments and Foreign Currency  Derivatives
         11




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Foreign
    Currency
      Foreign Currency


U.S.$Future revenues  Japanese Yen

¥
122.9


$
1.1Future expenditures  Japanese Yen

¥
4,006.7


$
34.9Contracts-in-process,
    unbilled receivables/(customer advances)  Japanese Yen

¥
10.4


$
0.1Future expenditures  EUROs


3.7


$
5.3   7.
    Property,
    Plant and Equipment  September 30,


December 31,2007


2006(In thousands)Land and land improvements

$
27,533


$
27,533Buildings


54,134



53,572Leasehold improvements


8,526



6,434Satellites in-orbit, including satellite transponder rights of
    $136.7 million


386,098



386,196Satellites under construction


107,548



59,085Earth stations


18,293



18,141Equipment, furniture and fixtures


91,529



76,787Other construction in progress


28,647



18,167722,308



645,915Accumulated depreciation and amortization


(139,836
)


(87,036
)$
582,472


$
558,879    12




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  8.
    Investments
    in and Advances to Affiliates    September 30,


December 31,2007


2006XTAR equity investment

$
89,988


$
97,202     Three Months


Nine MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006XTAR

$
(2,322
)

$
(2,575
)

$
(7,214
)

$
(5,879
)Globalstar service provider partnerships










2,955



$
(2,322
)

$
(2,575
)

$
(4,259
)

$
(5,879
)     Three Months


Nine MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006Revenues

$
8


$
3,063


$
416


$
11,517Elimination of our proportionate share of profit relating to
    affiliate transactions


(15
)


(40
)


(46
)


(327
)Profit relating to affiliate transactions not eliminated


13



32



37



257     XTAR
         13




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  paid-in-kind
      Three Months Ended


Nine Months EndedSeptember 30,


September 30,2007


2006


2007


2006Revenues

$
4.6


$
2.6


$
13.9


$
9.8Operating loss


(3.6
)


(3.6
)


(11.0
)


(7.0
)Net loss


(4.1
)


(4.5
)


(12.4
)


(9.9
)Balance Sheet Data:   September30,


December 31,2007


2006Current assets

$
9.0


$
6.4Total assets


127.4



132.1Current liabilities


25.9



20.1Long-term liabilities


35.0



33.1Members equity


66.5



78.9   Other
  lock-up
   14




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    9.
    Goodwill
    and Other Intangible Assets  Goodwill
  Income Taxes
  Goodwill  December 31, 2006

$
305,691Cumulative effect of adopting FIN 48 (see Note 3)


7,542Reversal of FIN 48 liabilities


(2,000
)Reversal of excess valuation allowance on deferred tax assets


(44,979
)Goodwill  September 30, 2007

$
266,254   Other
    Intangible Assets
    Weighted AverageRemaining


September 30, 2007


December 31, 2006Amortization Period


Gross


Accumulated


Gross


Accumulated(Years)


Amount


Amortization


Amount


AmortizationInternally developed software and technology


4


$
59.0


$
(21.6
)

$
59.0


$
(13.5
)Orbital slots


9



10.8



(3.0
)


10.8



(1.8
)Trade names


18



13.2



(1.3
)


13.2



(0.8
)Customer relationships


13



20.0



(2.7
)


20.0



(1.7
)Customer contracts


8



33.0



(12.1
)


33.0



(8.3
)Other intangibles


3



2.7



(1.2
)


2.7



(0.8
)$
138.7


$
(41.9
)

$
138.7


$
(26.9
)     2007

$
19.82008


18.82009


17.52010


14.22011


7.8  15




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  contracts-in-process,
  10.
    Debt  September 30,


December 31,2007


2006(In thousands)Short-term:4.1% Loan payable to Valley National Bank

$
141,050


$
Long-term:Loral Skynet 14.0% Senior Secured Notes due 2015 (principal
    amount $126 million)






128,084   Loan
    Payable Valley National Bank
          Loral
    Skynet Notes
   16




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
          SS/L
    Letter of Credit Facility
    11.
    Shareholders
    Equity  Preferred
    Stock
  Series A-1 Series A-1 Series B-1 Series B-1 Series A-1 Series A-1 Class B-1 Series B-1 Class B-1 Series B-1 Class B-1 Series B-1 Class B-1
 17




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Series A-1
  Series A-1 and/or
  30-day Class B-1 Class B-2
  Series A-1 Series B-1 Class B-1
 18




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Class B-2 Class B-2 Series A-1 Series A-2 Series A-2 Series B-1 Series B-2 Series B-2
  Series A-1 Series A-2 Series B-1 Series B-2
  Series A-2 Series B-2 Series A-2 Series B-2
  Series A-1 Series B-1 Series A-1 Series B-1
  Series A-1 Series B-1 Class B-1 Class B-1 class B-1 Series A-1 Series A-1 Series B-1
 19




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  class B-1 Series B-1 class B-1
      Form 8-K
  Stock
    Incentive Plan
    12.
    Commitments
    and Contingencies  Financial
    Matters
   20




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Balance of deferred amounts at January 1, 2007

$
53.9Accruals for deferred amounts issued during the period


Accruals relating to pre-existing contracts (including changes
    in estimates)


(10.6
)Balance of deferred amounts at September 30, 2007

$
43.3     start-up
  FM-6
   21




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Telesat
    Canada Transaction
  1 3 2 3
        Satellite
    Matters
   22




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      back-up back-up
       23




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Regulatory
    Matters
        Legal
    Proceedings
  Informal
    SEC Inquiry
   24




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Skynet
    Noteholders Litigation
           25




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
        Rainbow
    DBS Litigation
    New York
    Shareholder Litigation
   26




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Babus Form 8-K Form 8-K.
  Babus Babus
  Babus Babus Babus
  Babus
  Babus
  Delaware
    Shareholder Litigation
   27




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  In re: Loral Space and Communications Inc.
    Consolidated Litigation
        In re: Loral Space and Communications Inc. Consolidated
    Litigation
 28




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Indemnification
    Claims of Directors and Officers of Old Loral
  In re: Loral Space ERISA Litigation In re: Loral Space & Communications Ltd. Securities
    Litigation
  Class Action
    Securities Litigations
  Rule 10b-5 Beleson
  Rule 10b-5
 29




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Class Action
    ERISA Litigation
  In re:
    Loral Space ERISA Litigation
   30




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  In re: Loral Space ERISA
    Litigation
  Globalstar
    Related Class Action Securities Litigations
  Rule 10b-5
 31




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    In re:
    Loral Space & Communications Ltd. Securities
    Litigation Rule 10b-5
  In re: Loral
    Space & Communications Ltd. Securities Litigation In re: Loral Space &
    Communications Ltd. Securities Litigation
  Reorganization
    Matters
     32




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Other and
    Routine Litigation
    13.
    Income
    (Loss) Per Share    Three Months


Nine MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006Basic:Net income (loss) applicable to common shareholders

$
19,988


$
1,186


$
(9,344
)

$
(26,050
)Weighted average common shares outstanding


20,103



20,000



20,071



20,000Basic income (loss) per share

$
0.99


$
0.06


$
(0.47
)

$
(1.30
)   33




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Three Months


Nine MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006Diluted:Net income (loss) applicable to common shareholders

$
19,988


$
1,186


$
(9,344
)

$
(26,050
)Plus:Dividends on Loral
    Series A-1
    Preferred Stock


800











Beneficial conversion feature related to dividends on Loral
    Series A-1
    PreferredStock


171











Net income (loss) for diluted

$
20,959


$
1,186


$
(9,344
)

$
(26,050
)Common and potential common shares:Weighted average common shares outstanding


20,103



20,000



20,071



20,000Assumed exercise of stock options


361











Assumed conversion of Loral
    Series A-1
    Preferred Stock


1,417











Common and potential common shares


21,881



20,000



20,071



20,000Diluted income (loss) per share

$
0.96


$
0.06


$
(0.47
)

$
(1.30
)   Series A-1 Series B-1
  14.
    Segments       34




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
        Three
    Months Ended September 30, 2007
  Satellite


SatelliteManufacturing


Services


Corporate(1)


TotalRevenues and Adjusted EBITDA:Revenues(2)

$
194.9


$
40.7






$
235.6Intersegment revenues


12.4



0.7







13.1Operating segment revenues

$
207.3


$
41.4







248.7Eliminations(3)














(13.1
)Operating revenues as reported













$
235.6Segment Adjusted EBITDA before eliminations

$
12.8


$
20.5


$
(6.7
)

$
26.6Eliminations(3)














(2.0
)Adjusted EBITDA














24.6Depreciation and
    amortization(4)

$
(9.8
)

$
(13.2
)

$
(1.5
)


(24.5
)Operating income














0.1Interest and investment income














10.5Interest
    expense(5)














4.0Unrealized gain on foreign exchange contracts














56.7Other
    income(6)














3.3Loss on extinguishment of debt














(16.2
)Income tax provision














(23.1
)Equity loss in affiliates














(2.3
)Minority Interest














(7.1
)Net income













$
25.9  35




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Nine
    Months Ended September 30, 2007
  Satellite


SatelliteManufacturing


Services


Corporate(1)


TotalRevenues and Adjusted EBITDA:Revenues(2)

$
573.9


$
108.2






$
682.1Intersegment revenues


44.1



2.1







46.2Operating segment revenues

$
618.0


$
110.3







728.3Eliminations(3)














(46.1
)Operating revenues as reported













$
682.2Segment Adjusted EBITDA before eliminations

$
33.0


$
46.1


$
(23.8
)

$
55.3Eliminations(3)














(5.6
)Adjusted EBITDA














49.7Depreciation and
    amortization(4)

$
(26.0
)

$
(39.4
)

$
(11.1
)


(76.5
)Operating loss














(26.8
)Interest and investment income














27.7Interest
    expense(5)














(1.0
)Unrealized gain on foreign exchange contracts














122.1Other
    income(6)














3.6Loss on extinguishment of debt














(16.2
)Income tax provision














(54.9
)Equity loss in affiliates














(4.3
)Minority Interest














(20.5
)Net income













$
29.7Other Data:Total
    assets(7)

$
923.0


$
824.1


$
299.7


$
2,046.8  36




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Three
    Months Ended September 30, 2006
  Satellite


SatelliteManufacturing


Services


Corporate(1)


TotalRevenues and Adjusted EBITDA:Revenues(2)

$
175.2


$
51.5






$
226.7Intersegment revenues


15.8



0.7







16.5Operating segment revenues

$
191.0


$
52.2







243.2Eliminations(3)














(16.4
)Operating revenues as reported













$
226.8Segment Adjusted EBITDA before eliminations

$
15.9


$
28.0


$
(7.7
)

$
36.2Eliminations(3)














(0.1
)Adjusted EBITDA














36.1Depreciation and amortization

$
(6.6
)

$
(11.4
)

$
(0.6
)


(18.6
)Operating income














17.5Interest and investment income














6.9Interest expense














(8.0
)Other income














0.1Income tax provision














(6.3
)Equity loss in affiliates














(2.6
)Minority Interest














(6.4
)Net income













$
1.2  37




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Nine
    Months Ended September 30, 2006
  Satellite


SatelliteManufacturing


Services


Corporate(1)


TotalRevenues and Adjusted EBITDA:Revenues(2)

$
467.5


$
124.1






$
591.6Intersegment revenues


26.1



2.2







28.3Operating segment revenues

$
493.6


$
126.3







619.9Eliminations(3)














(28.2
)Operating revenues as reported













$
591.7Segment Adjusted EBITDA before eliminations

$
33.4


$
54.8


$
(21.9
)

$
66.3Eliminations(3)














(2.5
)Adjusted EBITDA














63.8Depreciation and amortization

$
(18.2
)

$
(33.2
)

$
(1.6
)


(53.0
)Operating loss from continuing operations














10.8Interest and investment income














16.4Interest expense














(18.7
)Other income














1.0Income tax provision














(11.4
)Equity loss in affiliates














(5.9
)Minority Interest














(18.3
)Net loss













$
(26.1
)Other Data:Total
    assets(7)

$
966.5


$
702.6


$
54.1


$
1,723.2     (1)
    
    Represents corporate expenses incurred in support of our
    operations and continuing expenses related to the remaining
    bankruptcy matters.(2)
    
    Includes revenues from affiliates of nil and $3.1 million
    for the three months ended September 30, 2007 and 2006,
    respectively, and $0.4 million and $11.5 million for
    the nine months ended September 30, 2007 and 2006,
    respectively.(3)
    
    Represents the elimination of intercompany sales and
    intercompany Adjusted EBITDA, primarily for satellites under
    construction by SS/L for Satellite Services.(4)
    
    Includes non-cash stock based compensation of $1.9 million
    and $12.2 million for the three and nine months ended
    September 30, 2007, respectively, as a result of
    shareholder approval of the Stock Incentive Plan amendments on
    May 22, 2007 (see Note 11).(5)
    
    Interest expense for the three and nine months ended
    September 30, 2007, includes a reduction of
    $5.5 million resulting from the reduction of the liability
    for warranty reserves.(6)
    
    Includes the recognition of a $3.6 million deferred gain
    realized in connection with a sale of an orbital slot in 2006.
    Other income also includes gains and (losses) on other foreign
    currency transactions.(7)
    
    Amounts are presented after the elimination of intercompany
    profit. Total assets include $214.2 million and
    $52.1 million of goodwill for Satellite Manufacturing and
    Satellite Services, respectively, as of September 30, 2007. 38




---



##### 



LORAL
    SPACE & COMMUNICATIONS INC.
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   15.
    Related
    Party Transactions  Transactions
    with Affiliates
  XTAR
        MHR
    Three Months


Nine MonthsEnded September 30,


Ended September 30,Loral Skynet Preferred Stock

2007


2006


2007


2006Dividends paid in cash

$
0.5


$
0.5


$
1.2


$
0.5Dividends paid in the form of additional shares Number of shares


23,399



27,011



44,539



27,011 Amount

$
4.7


$
5.4


$
8.9


$
5.4Loral Skynet NotesInterest payments on Loral Skynet Notes

$
5.0


$
5.1



9.0



5.1Redemption premium on Loral Skynet Notes

$
5.6


$



$
5.6


$
Loral Series-1 Preferred StockDividends paid in cash

$



$



$



$
Dividends paid in the form of additional shares Number of shares


18,829







28,155



 Amount

$
5.7


$



$
8.5


$
  39




---



##### 



16.
    Subsequent
    Events      1 3
    September 30, 2007Foreign currency contracts

$
116,395Other current assets


60,692Total current assets


177,087Property, plant and equipment, net


438,951Goodwill


52,080Intangible assets, net


51,112Other assets


2,970Total assets

$
722,200Short-term debt

$
141,050Other current liabilities


28,191Total current liabilities


169,241Long-term liabilities


53,310Total liabilities


222,551Minority interest


237,599Parent company investment


262,050Total liabilities and shareholders equity

$
722,200  40




---



##### 



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  The following discussion and analysis should be read in
    conjunction with our unaudited condensed consolidated financial
    statements (the financial statements) included in
    Item 1 and our latest Annual Report on
    Form 10-K
    filed with the Securities and Exchange Commission.
      1 3
  Disclosure
    Regarding Forward-Looking Statements
  Except for the historical information contained in the
    following discussion and analysis, the matters discussed below
    are not historical facts, but are forward-looking
    statements as that term is defined in the Private
    Securities Litigation Reform Act of 1995. In addition, we or our
    representatives have made and may continue to make
    forward-looking statements, orally or in writing, in other
    contexts. These forward-looking statements can be identified by
    the use of words such as believes,
    expects, plans, may,
    will, would, could,
    should, anticipates,
    estimates, project, intend,
    or outlook or other variations of these words. These
    statements, including without limitation, those relating to New
    Telesat, are not guarantees of future performance and involve
    risks and uncertainties that are difficult to predict or
    quantify. Actual events or results may differ materially as a
    result of a wide variety of factors and conditions, many of
    which are beyond our control. For a detailed discussion of these
    and other factors and conditions, please refer to the
    Commitments and Contingencies section below and to our other
    periodic reports filed with the Securities and Exchange
    Commission (SEC). We operate in an industry sector
    in which the value of securities may be volatile and may be
    influenced by economic and other factors beyond our control. We
    undertake no obligation to update any forward-looking
    statements.
  Overview
  Businesses
    Satellite
    Manufacturing
   41




---



##### 



Satellite
    Services
     42




---



##### 



1 3
  Bankruptcy
    Reorganization
  2001-2003, two-and-a-half
  No. 90-7, Financial Reporting of Entities in Reorganization Under the
    Bankruptcy Code (SOP 90-7)
  Future
    Outlook
    1 3
 43




---



##### 



Ku-band Ka-band
  Consolidated
    Operating Results
  Form 10-K
  Changes in Critical Accounting Policies
  Accounting for Uncertainty in Income Taxes, an
    interpretation of FASB Statement No. 109
    (FIN 48)
      Consolidated Operating Results 
 44




---



##### 



Revenues:
  Nine MonthsThree Months Ended September 30,


Ended September 30,2007


2006


2007


2006(In millions)


(In millions)Satellite Manufacturing

$
207.3


$
191.0


$
618.0


$
493.6Satellite Services


41.4



52.2



110.3



126.3Segment revenues


248.7



243.2



728.3



619.9Eliminations(1)


(13.1
)


(16.4
)


(46.1
)


(28.2
)Revenues as
    reported(2)

$
235.6


$
226.8


$
682.2


$
591.7   Adjusted
    EBITDA:
  Three Months


Nine MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006(In millions)


(In millions)Satellite Manufacturing

$
12.8


$
15.9


$
33.0


$
33.4Satellite Services


20.5



28.0



46.1



54.8Corporate
    expenses(3)


(6.7
)


(7.7
)


(23.8
)


(21.9
)Segment Adjusted EBITDA before eliminations


26.6



36.2



55.3



66.3Eliminations(1)


(2.0
)


(0.1
)


(5.6
)


(2.5
)Adjusted EBITDA

$
24.6


$
36.1


$
49.7


$
63.8  45




---



##### 



Reconciliation of Adjusted EBITDA to Net Income (Loss):
  Three Months


Nine MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006(In millions)


(In millions)Adjusted EBITDA

$
24.6


$
36.1


$
49.7


$
63.8Depreciation and
    amortization(4)


(24.5
)


(18.6
)


(76.5
)


(53.0
)Operating income (loss)


0.1



17.5



(26.8
)


10.8Interest and investment income


10.5



6.9



27.7



16.4Interest
    expense(5)


4.0



(8.0
)


(1.0
)


(18.7
)Unrealized gain on foreign exchange contracts (marked to market)


56.7







122.1



Other
    income(6)


3.3



0.1



3.6



1.0Loss on extinguishment of debt


(16.2
)






(16.2
)


Income tax provision


(23.1
)


(6.3
)


(54.9
)


(11.4
)Equity in net loss of affiliates


(2.3
)


(2.6
)


(4.3
)


(5.9
)Minority interest


(7.1
)


(6.4
)


(20.5
)


(18.3
)Net income (loss)

$
25.9


$
1.2


$
29.7


$
(26.1
)     (1)
    
    Represents the elimination of intercompany sales and
    intercompany Adjusted EBITDA for satellites under construction
    by SS/L for Satellite Services and for Satellite Services
    leasing transponder capacity to SS/L.(2)
    
    Includes revenues from affiliates of nil and $3.1 million
    for the three months ended September 30, 2007 and 2006,
    respectively, and $0.4 million and $11.5 million for
    the nine months ended September 30, 2007 and 2006,
    respectively.(3)
    
    Represents corporate expenses incurred in support of our
    operations and continuing expenses related to the remaining
    bankruptcy matters.(4)
    
    Includes non-cash stock based compensation of $1.9 million
    and $12.2 million for the three and nine months ended
    September 30, 2007, respectively, as a result of
    shareholder approval of the Stock Incentive Plan amendments on
    May 22, 2007 (see Note 11 to the financial statements).(5)
    
    Interest expense for the three and nine months ended
    September 30, 2007, includes a reduction of
    $5.5 million resulting from the reduction of the liability
    for warranty reserves(6)
    
    Includes the recognition of a $3.6 million deferred gain
    realized in connection with a sale of an orbital slot in 2006.
    Other income also includes gains and (losses) on other foreign
    currency transactions.  Three
    Months Ended September 30, 2007 Compared With
    September 30, 2006
  Revenues
    from Satellite Manufacturing
  Three MonthsEnded September 30,


% Increase/2007


2006


(Decrease)(In millions)Revenues from Satellite Manufacturing

$
207


$
191



9
%Eliminations


(12
)


(16
)Revenues from Satellite Manufacturing as reported

$
195


$
175



11
%    46




---



##### 



Revenues
    from Satellite Services
  Three Months EndedSeptember 30,


% Increase/2007


2006


(Decrease)(In millions)Revenues from Satellite Services

$
41


$
37



11
%Customer termination payment






15Eliminations


(1
)


(1
)Revenues from Satellite Services as reported

$
40


$
51



(21
)%     Cost
    of Satellite Manufacturing
  Three MonthsEnded September 30,


% Increase/2007


2006


(Decrease)(In millions)Cost of Satellite Manufacturing includes:Cost of Satellite Manufacturing before the following specific
    identified charges

$
167


$
148



13
%Accrued warranty obligations


(4
)


7Depreciation and amortization


10



7



48
%Total cost of Satellite Manufacturing as reported

$
173


$
162



7
%Cost of Satellite Manufacturing as a % of Satellite
    Manufacturing revenues as reported


89
%


92
%    47




---



##### 



Cost
    of Satellite Services
  Three MonthsEnded September 30,


% Increase/2007


2006


(Decrease)(In millions)Cost of Satellite Services includes:Cost of Satellite Services before depreciation and amortization

$
14


$
14



(2
)%Depreciation and amortization


13



11



16
%Total cost of Satellite Services as reported

$
27


$
25



6
%Cost of Satellite Services as a % of Satellite Services revenues
    as reported


66
%


49
%     Selling,
    General and Administrative Expenses
  Three MonthsEnded September 30,


% Increase/2007


2006


(Decrease)(In millions)Selling, general and administrative expenses includes:Selling, general and administrative expenses before specific
    charges

$
33


$
28



17
%Litigation costs


1



2Stock based compensation


1



Continuing expenses related to remaining bankruptcy matters






1Selling, general and administrative expenses

$
35


$
31



13
%% of revenues as reported


15
%


14
%     Interest
    and Investment Income
  Three MonthsEnded September 30,2007


2006(In millions)Interest and Investment Income

$
11


$
7    48




---



##### 



Interest
    Expense
  Three MonthsEnded September 30,2007


2006(In millions)Interest cost before capitalized interest

$
(1
)

$
9Capitalized interest


(3
)


(1
)Interest expense

$
(4
)

$
8     Unrealized
    Gain on Foreign Exchange Contracts
    Loss
    on Extinguishment of Debt
    Other
    Income
    Income
    Tax Provision
  Accounting for Uncertainty in Income Taxes, an interpretation
    of FASB Statement No. 109 Income
    Taxes
  paid-in-capital.
   49




---



##### 



Equity
    Income (Loss) in Affiliates
  Three MonthsEnded September 30,2007


2006(In millions)XTAR

$
(2
)

$
(3
)     Minority
    Interest
    Nine
    Months Ended September, 2007 Compared With September 30,
    2006
  Revenues
    from Satellite Manufacturing
  Nine MonthsEnded September 30,


% Increase/2007


2006


(Decrease)(In millions)Revenues from Satellite Manufacturing

$
618


$
494



25
%Eliminations


(44
)


(26
)


69
%Revenues from Satellite Manufacturing as reported

$
574


$
468



23
%     Revenues
    from Satellite Services
  Nine MonthsEnded September 30,


% Increase/2007


2006


(Decrease)(In millions)Revenues from Satellite Services

$
110


$
111



(1
)%Customer termination payment






15Eliminations


(2
)


(2
)


(7
)%Revenues from Satellite Services as reported

$
108


$
124



(13
)%  50




---



##### 



Cost
    of Satellite Manufacturing
  Nine MonthsEnded September 30,


% Increase/2007


2006


(Decrease)(In millions)Cost of Satellite Manufacturing includes:Cost of Satellite Manufacturing before the following specific
    identified charges

$
500


$
400



25
%Accrued warranty obligations


(5
)


8Depreciation and amortization


26



18



43
%Total cost of Satellite Manufacturing as reported

$
521


$
426



22
%Cost of Satellite Manufacturing as a% of Satellite Manufacturing
    revenues as reported


91
%


91
%     Cost
    of Satellite Services
  Nine MonthsEnded September 30,


% Increase/2007


2006


(Decrease)(In millions)Cost of Satellite Services includes:Cost of Satellite Services before depreciation and amortization

$
38


$
40



(4
)%Depreciation and amortization


39



33



19
%Total cost of Satellite Services as reported

$
77


$
73



7
%Cost of Satellite Services as a% of Satellite Services revenues
    as reported


72
%


59
%    51




---



##### 



Selling,
    General and Administrative Expenses
  Nine MonthsEnded September 30,


% Increase/2007


2006


(Decrease)(In millions)Selling, general and administrative expenses includes:Selling, general and administrative expenses before specific
    charges

$
92


$
83



10
%Litigation costs


8



2Stock based compensation


11



2Continuing expenses related to remaining bankruptcy matters






4Selling, general and administrative expenses

$
111


$
91



22
%% of revenues as reported


16
%


15
%     Interest
    and Investment Income
  Nine MonthsEnded September 30,2007


2006(In millions)Interest and investment income

$
28


$
16     Interest
    Expense
  Nine MonthsEnded September 30,2007


2006(In millions)Interest cost before capitalized interest

$
10


$
20Capitalized interest


(9
)


(1
)Interest expense

$
1


$
19    52




---



##### 



Unrealized
    Gain on Foreign Exchange Contracts
    Loss
    on Extinguishment of Debt
    Other
    Income
    Income
    Tax Provision
  Accounting for Uncertainty in Income Taxes, an interpretation
    of FASB Statement No. 109 Income
    Taxes
  paid-in-capital.
   53




---



##### 



Equity
    Income (Loss) in Affiliates
  Nine Months Ended September 30,2007


2006(In millions)XTAR

$
(7
)

$
(6
)Globalstar


3



$
(4
)

$
(6
)     Minority
    Interest
    Backlog
  Consolidated
    Satellite
    Manufacturing
    Satellite
    Services
    Liquidity
    and Capital Resources
  Telesat
    Canada Transaction
     54




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##### 



Loral
    Liquidity
       55




---



##### 



Series A-1 Series B-1 Class B-1 Class B-1 class B-1 Series A-1 Series A-1 Series B-1 class B-1 Series B-1 class B-1
   56




---



##### 



FM-6
    Contractual
    Obligations
  Form 10-K
  Net
    Cash (Used In) Provided by Operating Activities
  contracts-in-process
   57




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##### 



Net
    Cash Used in Investing Activities
      Net
    Cash Provided by Financing Activities
      Affiliate
    Matters
  1 3
  Commitments
    and Contingencies
    Other
    Matters
  Accounting
    Pronouncements
  SFAS 157
  Fair Value Measurements,
 58




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##### 



SFAS 159
  The
    Fair Value Option for Financial Assets and Financial Liabilities
  Item 3.
    Quantitative
    and Qualitative Disclosures About Market Risk  Foreign Currency
      Foreign Currency


U.S.$Future revenues  Japanese Yen

¥
122.9


$
1.1Future expenditures  Japanese Yen

¥
4,006.7


$
34.9Contracts-in-process,
    unbilled receivables/(customer advances)  Japanese Yen

¥
10.4


$
0.1Future expenditures  EUROs


3.7


$
5.3   Telesat
    Canada Transaction  Derivatives
         59




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##### 



Interest
      Item 4.
    Disclosure
    Controls and Procedures  Disclosure controls and
    procedures. Rules 13a-15(e) 15d-15(e)
  Internal control over financial
    reporting. Rules 13a-15(f) 15-d-15(f))
  PART II.
    OTHER INFORMATION
  Item 1.
    Legal
    Proceedings  Form 10-Q
  Item 1A.  Risk Factors
  Form 10-K
 60




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##### 



Form 10-K, and/or
  Item 6.
    Exhibits    8-K
  8-K
  8-K
  8-K 10-Q
  8-K
  8-K
  8-K
  8-K
  8-K
  8-K
     61




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##### 



62




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##### 



SIGNATURES
      Loral Space &
    Communications Inc.
  Richard
    J. Townsend
  Richard J. Townsend
 Executive Vice President and
 Chief Financial Officer
 (Principal Financial Officer)
 and Registrants Authorized Officer
   63




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##### 



EXHIBIT INDEX
  Exhibit No.



DescriptionExhibit 2
.1



Asset Transfer Agreement, dated as of August 7, 2007, by
    and among 4363205 Canada Inc., Loral Skynet Corporation and
    Loral Space & Communications Inc. (Incorporated by
    reference from the Companys Current Report on
    8-K filed on
    August 9, 2007).Exhibit 2
.2



Amendment No. 1 to Asset Transfer Agreement, dated as of
    September 24, 2007, by and among 4363205 Canada Inc., Loral
    Skynet Corporation and Loral Space & Communications
    Inc. (Incorporated by reference from the Companys Current
    Report on
    8-K filed on
    September 27, 2007).Exhibit 2
.3



Asset Purchase Agreement, dated as of August 7, 2007, by
    and among Loral Skynet Corporation, Skynet Satellite Corporation
    and Loral Space & Communications Inc. (Incorporated by
    reference from the Companys Current Report on
    8-K filed on
    August 9, 2007).Exhibit 10
.1



Amended and Restated Customer Credit Agreement, dated as of
    July 30, 2007, by and between Sirius Satellite Radio Inc.
    and Space Systems/Loral, Inc. (Incorporated by reference from
    the Companys Current Report on
    8-K filed on
    August 2, 2007).Exhibit 10
.2



Letter Agreement dated August 8, 2007 between Loral
    Space & Communications Inc. and MHR
    Fund Management LLC. (Incorporated by reference from the
    Companys Quarterly Report on
    10-Q filed
    on August 9, 2007).Exhibit 10
.3



Alternative Subscription Agreement, dated as of August 7,
    2007, by and between Loral Space & Communications
    Inc., Loral Skynet Corporation and 4363205 Canada Inc.
    (Incorporated by reference from the Companys Current
    Report on
    8-K filed on
    August 9, 2007).Exhibit 10
.4



Ancillary Agreement, dated as of August 7, 2007, by and
    among Loral Space & Communications Inc., Loral Skynet
    Corporation, Public Sector Pension Investment Board, 4363205
    Canada Inc. and 4363230 Canada Inc. (Incorporated by reference
    from the Companys Current Report on
    8-K filed on
    August 9, 2007).Exhibit 10
.5



Letter Agreement, dated August 29, 2007, by and among Loral
    Space & Communications, Inc. and the holders of the
    outstanding Series A Cumulative 7.50% Convertible
    Preferred Stock and Series B Cumulative
    7.50% Convertible Preferred Stock of Loral
    Space & Communications Inc. (Incorporated by reference
    from the Companys Current Report on
    8-K filed on
    August 31, 2007).Exhibit 10
.6



Loan and Security Agreement, dated as of September 4, 2007,
    by and between Loral Skynet Corporation and Valley National Bank
    (Incorporated by reference from the Companys Current
    Report on
    8-K filed on
    September 6, 2007).Exhibit 10
.6



Continuing Corporate Guaranty, dated as of September 4,
    2007, by Loral Space & Communications Inc. in favor of
    Valley National Bank (Incorporated by reference from the
    Companys Current Report on
    8-K filed on
    September 6, 2007).Exhibit 10
.7



Pledge Agreement, dated as of September 4, 2007, by Loral
    Space & Communications Inc. in favor of Valley
    National Bank (Incorporated by reference from the Companys
    Current Report on
    8-K filed on
    September 6, 2007).Exhibit 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.Exhibit 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.Exhibit 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.Exhibit 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.  64