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Loral Space & Communications

A U.S. satellite communications and space-technology investment company formed from the reorganization of Loral Corporation.

Last updated August 22, 2026

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Overview

Loral Space & Communications is a United States-based satellite communications company established in 1996 from the remaining assets of Loral Corporation after Loral divested its defense-electronics and systems-integration businesses to Lockheed Martin. The transaction reshaped Loral from a diversified defense and technology group into a company centered on satellite communications, satellite operations, space systems, and related investments. The company’s activities have included ownership interests in satellite operators, communications infrastructure, and international joint ventures. A major development was the 1998 acquisition of Orion Network Systems through an exchange of common stock. Orion operated satellite-based communications networks and expanded Loral’s presence in managed communications services. During the following decade, Loral also pursued satellite fleet development through its Loral Skynet subsidiary and participated in the creation and expansion of Telesat, one of the most important assets associated with the Loral group. Loral experienced severe financial pressure in the early 2000s. In July 2003, Loral and certain subsidiaries sought protection under Chapter 11 of the U.S. Bankruptcy Code. As part of its restructuring, the company announced the sale of its North American satellite fleet to Intelsat. Loral completed its emergence from bankruptcy in November 2005, after which it continued operating through a more focused portfolio of satellite and space-related assets. The company has also been associated with a major U.S. export-control controversy stemming from its involvement in the review of a failed Chinese rocket launch in 1996. In 2002, Loral reached a civil settlement with the U.S. government and paid penalties relating to the disclosure of technical information. The matter resulted in substantial scrutiny of the company and its former leadership, although the settlement did not constitute an admission or denial of the government’s charges. In 2007, Loral and the Public Sector Pension Investment Board of Canada completed the acquisition of Telesat from BCE. Loral held a substantial economic interest and a minority voting interest in the resulting Telesat holding structure, while Loral Skynet’s assets were transferred into Telesat. This transaction made Telesat a central component of Loral’s continuing satellite communications strategy. Loral also maintained interests in other ventures, including XTAR. Loral later sold Space Systems/Loral, its satellite-manufacturing subsidiary, to MacDonald, Dettwiler and Associates in 2012. The disposal further narrowed Loral’s direct operating footprint in satellite manufacturing and emphasized its role as an investment and holding company focused on satellite communications assets. In 2020, Loral’s investment in Telesat was combined with a new public stock offering associated with Telesat on Nasdaq under the symbol TSAT. Loral’s historical significance therefore rests less on a broad consumer-facing brand than on its role in the consolidation, financing, ownership, and operation of commercial satellite communications businesses.

History

Loral Space & Communications was formed in 1996 from the remnants of Loral Corporation. The restructuring followed Loral’s sale of its defense-electronics and systems-integration operations to Lockheed Martin, leaving the newly established company focused on satellite communications and related space businesses rather than the wider defense-technology portfolio of its predecessor. The company expanded its communications network interests in March 1998 by completing the acquisition of Orion Network Systems through an exchange of common stock. Orion’s satellite-based communications capabilities complemented Loral’s own activities and strengthened its position in commercial satellite networking. Loral subsequently operated through subsidiaries and affiliated companies involved in satellite capacity, fleet operations, and space systems. Loral’s development was complicated by financial distress and regulatory scrutiny. In January 2002, it settled a U.S. government case concerning the disclosure of technical information during an investigation into the failure of a Chinese rocket launch in 1996. The case became one of the most consequential controversies in the company’s history because U.S. authorities and congressional investigators argued that information provided during the review could have benefited China’s launch-vehicle and missile-guidance capabilities. Loral paid civil penalties under the settlement without admitting or denying the government’s allegations. On July 15, 2003, Loral and certain subsidiaries filed voluntary petitions for protection under Chapter 11. The restructuring included the planned sale of Loral’s North American satellite fleet to Intelsat, an asset-disposal measure intended to reduce debt and stabilize the company. Loral completed its reorganization and emerged from Chapter 11 on November 21, 2005. The post-bankruptcy company operated with a more concentrated set of satellite and space-related investments. In 2006, Loral Skynet began construction of Telstar 11N, a Ku-band communications satellite designed to provide coverage across multiple regions. The project illustrated Loral’s continuing interest in satellite infrastructure even as the group adjusted its ownership structure and portfolio. A more important strategic step followed in 2007, when Loral and the Public Sector Pension Investment Board of Canada received regulatory approval to acquire Telesat from BCE. The transaction closed on October 31, 2007. Loral received a substantial economic interest and a minority voting interest in Telesat Holdco, while Loral Skynet was merged into Telesat and its assets were transferred to the new organization. The Telesat transaction became the central pillar of Loral’s continuing satellite communications exposure. The company also participated in other domestic and international joint ventures, including an interest in XTAR. At the operating-company level, Loral maintained a presence in satellite manufacturing through Space Systems/Loral. That business was sold to MacDonald, Dettwiler and Associates in 2012, reducing Loral’s direct involvement in spacecraft manufacturing and reinforcing its position as an owner and investor in satellite communications assets. Bernard L. Schwartz retired in 2006 after a long tenure associated with the Loral organization. Michael B. Targoff was subsequently identified as the company’s chief executive. In 2020, Loral’s Telesat investment was combined with a new public stock offering linked to Telesat on Nasdaq under the symbol TSAT. Loral’s historical trajectory is therefore one of transformation: it began as the post-divestiture remnant of a broad technology and defense group, survived bankruptcy and regulatory controversy, and evolved into a specialized holder of interests in commercial satellite communications and space-related ventures.

  • 2020

    Telesat linked to a new Nasdaq offering

    [1]

    Loral’s investment in Telesat was combined with a new public stock offering associated with Telesat on Nasdaq under TSAT.

  • 2012

    Space Systems/Loral is sold

    [1]

    Loral sold its satellite-manufacturing subsidiary Space Systems/Loral to MacDonald, Dettwiler and Associates.

  • 2007

    Telesat acquisition closes

    [1]

    Loral and the Public Sector Pension Investment Board completed their acquisition of Telesat from BCE, and Loral Skynet assets were transferred into Telesat.

  • 2006

    Telstar 11N construction begins

    [1]

    Loral Skynet began construction of Telstar 11N, a multi-region Ku-band communications satellite.

  • 2005

    Emergence from bankruptcy

    [1]

    Loral completed its Chapter 11 reorganization and emerged from bankruptcy protection.

  • 2003

    Chapter 11 filing

    [1]

    Loral and certain subsidiaries filed voluntary petitions for reorganization under Chapter 11.

  • 2002

    Export-control settlement

    [1]

    Loral reached a civil settlement with the U.S. government concerning technical information disclosed during a review of a Chinese rocket-launch failure.

  • 1998

    Orion Network Systems acquisition completed

    [1]

    Loral completed the acquisition of Orion Network Systems through an exchange of common stock.

  • 1996

    Loral Space & Communications is formed

    [1]

    The company was created from the remaining businesses of Loral Corporation after the sale of its defense-electronics and systems-integration operations to Lockheed Martin.

Products and positioning

A specialized satellite communications and space-technology investment company whose principal strategic role has been the ownership, development, and restructuring of satellite infrastructure and related businesses.

  • Satellite communications

    Satellite communications services

    Loral’s core business area has been commercial satellite communications, including satellite capacity, network infrastructure, and related communications services delivered through subsidiaries and affiliated operators. The company’s portfolio has emphasized ownership interests and strategic participation in satellite systems rather than a consumer-facing telecommunications brand.

  • Satellite operator and communications subsidiary

    Loral Skynet

    Loral Skynet was a Loral subsidiary involved in satellite communications and satellite fleet development. Its activities included the construction of Telstar 11N and the provision or management of satellite capacity. In connection with the 2007 Telesat transaction, Loral Skynet was merged into Telesat and its assets were transferred to that company.

  • Satellite manufacturing

    Space Systems/Loral

    Space Systems/Loral was Loral’s satellite-manufacturing business, associated with the design and production of commercial communications spacecraft. It represented the group’s principal direct manufacturing capability in the space sector until Loral sold the subsidiary to MacDonald, Dettwiler and Associates in 2012.

  • Satellite communications investment · 2007

    Telesat investment

    Telesat became Loral’s most important strategic satellite-communications investment after the 2007 acquisition from BCE. The transaction gave Loral a substantial economic interest and minority voting interest in the resulting Telesat holding structure, providing exposure to a major commercial satellite operator.

  • Satellite communications joint venture

    XTAR investment

    Loral has participated in international and domestic satellite-related joint ventures, including an ownership interest in XTAR. The venture reflects the company’s use of partnerships and shared ownership structures to participate in specialized satellite communications markets.

Controversies

  • 2002

    Chinese rocket-launch information controversy

    Loral reached a civil settlement with the U.S. government over allegations involving the disclosure of technical information during an investigation into a 1996 Chinese rocket-launch failure. Congressional and executive-branch reviews raised concerns that the information could assist Chinese launch-vehicle and missile-guidance development. Loral paid civil penalties while neither admitting nor denying the government’s charges.

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Brand decisions

  • 2020

    Combine the Telesat investment with a public stock offeringStrategy

    Background

    Loral’s continuing exposure to Telesat was reorganized alongside a new public-market offering.

    Action taken

    The Telesat-related structure was associated with a new Nasdaq offering under the symbol TSAT.

    Aftermath

    The move provided a public-market framework for Telesat while preserving Loral’s historical connection to the satellite operator.

  • 2012

    Sell Space Systems/LoralM&A

    Background

    Loral continued concentrating on satellite communications ownership and investment rather than retaining a broad direct manufacturing portfolio.

    Action taken

    The company sold Space Systems/Loral to MacDonald, Dettwiler and Associates.

    Aftermath

    The sale reduced Loral’s direct involvement in satellite manufacturing and emphasized its role as an investor in satellite communications assets.

  • 2007

    Acquire Telesat with the Public Sector Pension Investment BoardM&A

    Background

    Loral aimed to establish a major long-term position in commercial satellite operations through a strategic partnership with a Canadian public-sector investor.

    Action taken

    Loral and the Public Sector Pension Investment Board acquired Telesat from BCE. Loral Skynet was merged into Telesat and its assets were transferred.

    Aftermath

    Loral obtained a substantial economic interest and minority voting interest in Telesat Holdco, making Telesat a central asset in Loral’s portfolio.

    Transaction value. CAD 3.25 billion acquisition (2007)

  • 2006

    Develop Telstar 11NProduct launch

    Background

    Loral Skynet sought to expand its satellite capacity and geographic reach through a new multi-region communications satellite.

    Action taken

    Construction began on Telstar 11N, a Ku-band satellite intended to serve multiple regions.

    Aftermath

    The project demonstrated continued investment in satellite infrastructure before Loral Skynet’s subsequent integration into Telesat.

  • 2003

    Enter Chapter 11 and sell the North American satellite fleetStrategy

    Background

    Loral faced substantial debt and financial pressure and required a restructuring of its operations and obligations.

    Action taken

    Loral and certain subsidiaries filed for Chapter 11 protection and announced the sale of the North American satellite fleet to Intelsat.

    Aftermath

    The asset sale supported debt reduction, and Loral emerged from Chapter 11 in November 2005 with a more concentrated portfolio.

  • 1998

    Acquire Orion Network SystemsM&A

    Background

    Loral sought to expand its satellite-network and communications activities after being reconstituted as a more focused satellite and space company.

    Action taken

    The company completed the acquisition through an exchange of common stock.

    Aftermath

    The transaction broadened Loral’s communications-network portfolio and reinforced its role in satellite-based services.

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