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Exhibit 12

LORAL SPACE & COMMUNICATIONS LTD., A
DEBTOR-IN-POSSESSION

COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER
FIXED CHARGES

(in thousands)


(unaudited)


|                                                                                                                                                                                                              |                                       |                  |          |             |  |   |          |        | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------- | ---------------- | -------- | ----------- |  | - | -------- | ------ | 
|                                                                                                                                                                                                              |                                       |                 
|                                                                                                                                                                                                              |                                       | Six Months Ended
|                                                                                                                                                                                                              |                                       | June 30,        
|                                                                                                                                                                                                              |                                       |                 
|                                                                                                                                                                                                              |                                       | 2003             |          | 2002       
|                                                                                                                                                                                                              |                                       |                  |          |            
|                                                                                                                                                                                                              |                                       |                  |          | As Restated
|(Loss) before income taxes, equity in net losses
    of affiliates, minority interest, cumulative effect of change in
    accounting principle and extraordinary gain on acquisition of
    minority interest |                                       | $                | (136,867 | )           |  | $ | (3,714   | )     
|Plus fixed charges:                                                                                                                                                                                           |                                       |                  |          |             |  |   |          |       
|                                                                                                                                                                                                              | Interest expense                      |                  |          | 54,576      |  |   |          | 52,833 | 
|                                                                                                                                                                                                              | Interest component of rent expense(1) |                  |          | 6,534       |  |   |          | 7,612  | 
|Less: capitalized interest                                                                                                                                                                                    |                                       |                  | (18,843  | )           |  |   | (15,878  | )     
|                                                                                                                                                                                                              |                                       |                  |          |             |  |   |          |       
|Earnings available to cover fixed charges                                                                                                                                                                     |                                       | $                | (94,600  | )           |  | $ | 40,853   |       
|                                                                                                                                                                                                              |                                       |                  |          |             |  |   |          |       
|Fixed charges(2)                                                                                                                                                                                              |                                       | $                | (67,830  | )           |  | $ | (119,218 | )     
|                                                                                                                                                                                                              |                                       |                  |          |             |  |   |          |       
|Deficiency of earnings to cover fixed charges                                                                                                                                                                 |                                       | $                | (162,430 | )           |  | $ | (78,365  | )     
|                                                                                                                                                                                                              |                                       |                  |          |             |  |   |          |       



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|    |                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The interest component of rent expense is deemed
    to be approximately 25% of total rent expense.                                                                                                                          
|   
|(2) | Preferred dividends have not been adjusted for
    income taxes, due to the composition of the taxing jurisdictions
    underlying the Companys operations and the resulting
    impact on the Companys effective tax rate.