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EXHIBIT 12
LORAL SPACE & COMMUNICATIONS LTD.
COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
---------------------
2000 1999
--------- ---------
<S> <C> <C>
Income (loss) before income taxes, equity in net loss of
affiliates and minority interest.......................... $ 11,656 $ (7,348)
Plus fixed charges:
Interest expense....................................... 92,232 82,380
Interest component of rent expense(1).................. 7,350 5,390
Less: capitalized interest.................................. 6,480 40,558
--------- ---------
Earnings available to cover fixed charges................... $ 104,758 $ 39,864
========= =========
Fixed charges(2)............................................ $(149,610) $(110,921)
========= =========
Deficiency of earnings to cover fixed charges............... $ (44,852) $ (71,057)
========= =========
</TABLE>
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(1) The interest component of rent expense is deemed to be approximately 25% of
total rent expense.
(2) Fixed charges include preferred dividends as adjusted for taxes.
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