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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,    
|                                                                                                                                                                                                            |                                       |                  
|                                                                                                                                                                                                            |                                       | 2003              |          | 2002       
|                                                                                                                                                                                                            |                                       |                   |          |            
|                                                                                                                                                                                                            |                                       |                   |          | As restated
|                                                                                                                                                                                                            |                                       |                  
|                                                                                                                                                                                                            |                                       | (In thousands)   
|                                                                                                                                                                                                            |                                       | (Unaudited)      
|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 |                                       | $                 | (223,381 | )           |  | $ | (37,953  | )     
|Plus fixed charges:                                                                                                                                                                                         |                                       |                   |          |             |  |   |          |       
|                                                                                                                                                                                                            | Interest expense                      |                   |          | 72,013      |  |   |          | 81,763 | 
|                                                                                                                                                                                                            | Interest component of rent expense(1) |                   |          | 9,438       |  |   |          | 11,452 | 
|Less: capitalized interest                                                                                                                                                                                  |                                       |                   | (26,350  | )           |  |   | (25,298  | )     
|                                                                                                                                                                                                            |                                       |                   |          |             |  |   |          |       
|Earnings available to cover fixed charges                                                                                                                                                                   |                                       |                   | (168,280 | )           |  |   | 29,964   |       
|Fixed charges(2)                                                                                                                                                                                            |                                       |                   | (88,171  | )           |  |   | (160,595 | )     
|                                                                                                                                                                                                            |                                       |                   |          |             |  |   |          |       
|Deficiency of earnings to cover fixed charges                                                                                                                                                               |                                       | $                 | (256,451 | )           |  | $ | (130,631 | )     
|                                                                                                                                                                                                            |                                       |                   |          |             |  |   |          |       



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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.