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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
September 28, 1999
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LORAL ORION, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-22085 52-2008654
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number
2440 Research Boulevard, Suite 400, Rockville MD 20850
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number,including area code:
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(301) 258-8101
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Item 5. Other Events.
On September 28, 1999, Loral Asia Pacific Satellite (HK) Limited
("Loral Orion HK"), a subsidiary of Loral Orion, Inc. ("Loral Orion"), closed
the previously announced transaction with APT Satellite Company Limited ("APT")
pursuant to which Loral Orion HK acquired all transponder capacity on the Apstar
IIR satellite (other than with respect to one C-band transponder) from APT via a
lease through the end of life of the satellite. Loral Orion HK will also have
the option to lease from APT replacement satellites upon the end of life of
Apstar IIR.
In connection with the closing, Loral Orion HK notified APT that it
will prepay on March 27, 2000 all then remaining installments of the purchase
price. As a result of this prepayment election by Loral Orion HK, the aggregate
amount of the purchase price was reduced from approximately $298 million to
approximately $273 million. Insurance proceeds from the Orion 3 launch failure
will be used to fund substantially all of such purchase price.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
LORAL ORION, INC.
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(Registrant)
Date: October 13, 1999 By:/s/ Eric J. Zahler
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Eric J. Zahler
Senior Vice President
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