Loral Space and Communications has announcedthat for the year ending December 31, 2005, it is not considered an accelerated filer as defined by the Securities and Exchange Commission (SEC). In accordance with SEC rules, a non-accelerated filer is required to file its Form 10-K within 90 days after the end of its fiscal year.
In an unrelated matter, Loral also announced that in connection with the election of Michael B. Targoff as chief executive officer of Loral effective March 1, 2006, the NASDAQ Stock Market Inc. notified Loral on March 10, 2006, that the composition of the company’s audit committee no longer complies with NASDAQ Marketplace Rule 4350.
Marketplace Rule 4350 requires that a listed company’s audit committee be comprised of at least three independent directors. Prior to his election as CEO, Mr. Targoff was non-executive vice chairman of Loral and a member of Loral’s audit committee. As CEO, Mr. Targoff is no longer an independent board member and, accordingly, he has resigned from the audit committee.
The NASDAQ has provided Loral with a cure period until the earlier of the company’s next annual shareholder’s meeting or February 9, 2007, to regain compliance. The company is currently considering the composition of its audit committee and intends to appoint a third independent member to the committee within the specified cure period.
