EchoStar may latch onto Loral: could it be a cheaper way to deliver high-def?(Top of the Week)(EchoStar Communications Corp. may mid for part of Loral Space & Communications Ltd.)(Brief Article)

Broadcasting & Cable, August, 2003 by Higgins, John M.

In a departure, Charlie Ergen's fast-growing DBS company EchoStar Communications Corp. may make a $1.5 billion bid for a chunk of bankrupt satellite company Loral Space & Communications Ltd.

Loral filed for Chapter 11 bankruptcy protection last month, wiped out by debt from a $2 billion investment in the failed Globalstar worldwide satellite telephone operation. The EchoStar offer would cover four Telstar satellites aimed at North America, two more under construction (one, though, already owned by EchoStar), orbital slots, and Loral's manufacturing operation.

The manufacturing operation has been losing money, but the satellites throw off about $150 million in operating cash flow per year.

But four of the satellites are Ku-band birds...

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