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Exhibit 12

LORAL SPACE & COMMUNICATIONS LTD., A
DEBTOR IN POSSESSION

COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER
FIXED CHARGES

|                                                                                                                        |                                       |                  |          |       |  |   |          |        | 
|----------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | ---------------- | -------- | ----- |  | - | -------- | ------ | 
|                                                                                                                        |                                       |                 
|                                                                                                                        |                                       | Six Months Ended
|                                                                                                                        |                                       | June 30,        
|                                                                                                                        |                                       |                 
|                                                                                                                        |                                       | 2004             |          | 2003 
|                                                                                                                        |                                       |                  |          |      
|                                                                                                                        |                                       |                 
|                                                                                                                        |                                       | (In thousands)  
|                                                                                                                        |                                       | (Unaudited)     
|Loss from continuing operations before income
    taxes, equity income (losses) in affiliates and minority
    interest |                                       | $                | (125,366 | )     |  | $ | (165,756 | )     
|Plus fixed charges:                                                                                                     |                                       |                  |          |       |  |   |          |       
|                                                                                                                        | Interest expense                      |                  |          | 4,790 |  |   |          | 23,886 | 
|                                                                                                                        | Interest component of rent expense(1) |                  |          | 4,115 |  |   |          | 6,534  | 
|Less: capitalized interest                                                                                              |                                       |                  | (957     | )     |  |   | (7,438   | )     
|                                                                                                                        |                                       |                  |          |       |  |   |          |       
|Earnings available to cover fixed charges                                                                               |                                       |                  | (117,418 | )     |  |   | (142,774 | )     
|Fixed charges(2)                                                                                                        |                                       |                  | (8,905   | )     |  |   | (37,139  | )     
|                                                                                                                        |                                       |                  |          |       |  |   |          |       
|Deficiency of earnings to cover fixed charges                                                                           |                                       | $                | (126,323 | )     |  | $ | (179,913 | )     
|                                                                                                                        |                                       |                  |          |       |  |   |          |       



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The interest component of rent expense is deemed
    to be approximately 25% of total rent expense.                                                                                                                                                                                                                                                                                                                                                 
|   
|(2) | Preferred dividends for the six months ended
    June 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.
    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.