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EXHIBIT 12
LORAL SPACE & COMMUNICATIONS LTD.
COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES
(IN THOUSANDS)
(UNAUDITED)
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<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
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2000 1999
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<S> <C> <C>
Income (loss) before income taxes, equity in net loss of
affiliates and minority interest.......................... $ 10,124 $ (15,651)
Plus fixed charges:
Interest expense.......................................... 137,075 126,661
Interest component of rent expense(1)..................... 11,010 6,567
Less: capitalized interest.................................. 11,489 59,477
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Earnings available to cover fixed charges................... $ 146,720 $ 58,100
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Fixed charges(2)............................................ $(220,565) $(180,687)
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Deficiency of earnings to cover fixed charges............... $ (73,845) $(122,587)
========= =========
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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 the Company's
effective tax rate, excluding one-time events.
