While still in the bankruptcy process, Loral identified an inorganic growth opportunity through the potential acquisition of another Fixed Services Satellite (FSS) company that was up for auction: New Skies Satellite Holdings Ltd. New Skies had five satellites on offer. This acquisition would have allowed Loral to regain capacity that had been lost through the divesture of its own satellites during the bankruptcy. After Loral emerged from bankruptcy, it continued its pursuit of New Skies. As stated in a Delaware Chancery Court Memorandum of Opinion written by Vice Chancellor Leo E. Strine, Jr., “… Loral’s attempt to acquire New Skies was compromised by questions about Loral’s financial strength and stability. “ Though the highest bidder, Loral lost the New Skies opportunity to market competitor SES.

Per Vice Chancellor Strine’s opinion, Michael Targoff had discussed a $200M investment from MHR in order to resolve new Skies apprehension. At the time, Michael Targoff was still only the Vice Chairman of Loral and had an office in MHR’s New York offices.