Can Loral Space & Communications Inc. (LORL) Double and Prove Hedge Funds Right?

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Page 21 of 27 SEC Filing

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(xviii) MHR Holdings may be deemed the beneficial owner of 8,339,41913 shares of Common Stock (approximately 38.9% of the total number of shares of Common Stock outstanding, calculated in accordance with Rule 13d-3(d)(1)(i) under the Act). This number consists of all
of the shares of Common Stock otherwise described in this Item 5(a) by virtue of MHR Holdings position as the managing member of Fund Management.

(xix) Dr. Rachesky may be deemed the beneficial owner of 8,354,41914 shares of Common Stock
(approximately 39.0% of the total number of shares of Common Stock outstanding, calculated in accordance with Rule 13d-3(d)(1)(i) under the Act). This number consists of (a) all of the shares of Common Stock otherwise described in this
Item 5(a) by virtue of Dr. Racheskys position as the managing member of each of MHRC, MHRC II, Institutional Advisors III and MHR Holdings and as the manager of MHRC I, and (b) 15,000 shares of Common Stock held directly by
Dr. Rachesky.

(b) (i) Master Account II Holdings may be deemed to have (x) the sole power to direct the disposition of 1,133,569 shares of
Common Stock which may be deemed to be beneficially owned by Master Account II Holdings as described above, and (y) the sole power to direct the voting of 1,133,569 shares of Common Stock which may be deemed to be beneficially owned by Master
Account II Holdings as described above.

(ii) Master Account II may be deemed to have (x) the sole power to direct the disposition of 1,133,569
shares of Common Stock which may be deemed to be beneficially owned by Master Account II as described above, and (y) the sole power to direct the voting of 1,133,569 shares of Common Stock which may be deemed to be beneficially owned by Master
Account II as described above.

(iii) Capital Partners (100) may be deemed to have (x) the sole power to direct the disposition of 151,898
shares of Common Stock which may be deemed to be beneficially owned by Capital Partners (100) as described above, and (y) the sole power to direct the voting of 151,898 shares of Common Stock which may be deemed to be beneficially owned by
Capital Partners (100) as described above.

(iv) Advisors may be deemed to have (x) the sole power to direct the disposition of 1,285,467 shares
of Common Stock which may be deemed to be beneficially owned by Advisors as described above, and (y) the sole power to direct the voting of 1,285,467 shares of Common Stock which may be deemed to be beneficially owned by Advisors as described
above.

13 In addition, MHR Holdings may be deemed the beneficial owner of all of the shares of Non-Voting Common Stock otherwise described in the footnotes to this Item 5(a) by virtue of its position as the managing member
of Fund Management.
14 In addition, Dr. Rachesky may be deemed the beneficial owner of all of the shares of Non-Voting Common Stock otherwise described in the footnotes to this Item 5(a) by virtue of Dr. Racheskys
position as the managing member of each of MHRC, MHRC II, Institutional Advisors III and MHR Holdings.

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