NEW YORK, NY--(Marketwire - Nov 30, 2012) - Loral Space & Communications Inc. (NASDAQ: LORL) today announced that, in connection with the previously disclosed planned restructuring of its corporate office as a result of the sale of the Company's former subsidiary, Space Systems/Loral, the Company expects to implement certain changes prior to January 1, 2013. These changes include relinquishing by Michael Targoff of the full time CEO position and his retention as a consultant to the Board of Directors with primary responsibility for strategic matters relating to Telesat, oversight of the ViaSat lawsuit and management of XTAR. Mr. Targoff will continue in his role as Vice Chairman of the Board of Directors. The Company expects Mr. Targoff's consulting fees will represent a substantial reduction from the compensation he currently receives as CEO.
The Company is also planning for the phased departures in December 2012 and the first quarter of 2013 of certain other senior executive officers, with their positions to be filled internally.
Mr. Targoff also informed the Company that he is planning to sell up to 300,000 shares of his Loral stock prior to January 1, 2013 as part of personal financial planning matters, predominantly tax related. Mr. Targoff will continue to own, along with his wife and other family interests controlled by him, stock and restricted stock units representing approximately 500,000 shares of Loral.
Commenting on the changes, Mr. Targoff said, "Loral continues to be my most important financial and professional activity. I welcome these changes which serve to maximize pre- and after-tax cost efficiencies for the benefit of both the company and me, yet allow me to continue to be actively engaged in the important strategic activities that will drive shareholder value."
About Loral Space & Communications Inc.
Loral Space & Communications is a satellite communications company. Loral owns 64 percent of Telesat Canada, a global operator of telecommunications and direct broadcast satellites used to distribute video entertainment programming, broadband data, and provide access to Internet services and other value-added communications services. For more information, visit Loral's web site at www.loral.com. LORL-G
This document contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. When used in this press release, the words "believes," "expects," "plans," "may," "will," "would," "could," "should," "anticipates," "estimates," "project," "intend" or "outlook" or other variations of these words or other similar expressions are intended to identify forward-looking statements and information. In addition, Loral Space & Communications Inc. or its representatives have made or may make forward-looking statements, orally or in writing, which may be included in, but are not limited to, various filings made from time to time with the Securities and Exchange Commission, and press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results may differ materially from anticipated results as a result of certain risks and uncertainties which are described as "Risk Factors" and in the "Commitments and Contingencies" note to our financial statements in the current Form 10-K and in Loral's quarterly reports on Form 10-Q. The reader is specifically referred to these documents, as well as the Company's other filings with the Securities and Exchange Commission.
Risks and uncertainties include but are not limited to (1) risks associated with financial factors, including swings in the global financial markets, increases in interest rates and access to capital; (2) risks associated with satellite services, including dependence on large customers, launch delays and failures, in-orbit failures and competition; (3) regulatory risks, such as the effect of industry and government regulations that affect Telesat; (4) litigation risks, including patent litigation with ViaSat and (5) other risks, including a possible initial public offering at Telesat that could adversely affect the market for our common stock. The foregoing list of important factors is not exclusive. Furthermore, Loral operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond Loral's control.