EX-99.1 Fourth Amended and Restated Commitment Letter

February 1, 2007

4363205 Canada Inc.

c/o Loral Space & Communications Inc.

600 Third Avenue

New York, New York 10016

Attention: Richard Mastoloni, Treasurer

Project Thunder

Fourth Amended and Restated Commitment Letter

$2.179 Billion Senior Secured Credit Facilities

$910 Million Senior Unsecured Bridge Facility

Ladies and Gentlemen:

This Fourth Amended and Restated Commitment Letter amends and restates in its entirety the Third Commitment Letter dated January 19, 2007 among you, Morgan Stanley Senior Funding, Inc. (“ MSSF ”), Morgan Stanley Senior Funding, Nova Scotia (“ MSSFNS ”), Morgan Stanley & Co. Incorporated (“ MS ”), UBS Loan Finance LLC (“ UBS ”), UBS Securities LLC (“ UBSS ”), JPMorgan Chase Bank, N.A. (“ JPM ”), J.P. Morgan Securities Inc. (“ JPMSI ”), The Bank of Nova Scotia (“ BNS ”), Citigroup Global Markets Inc. (“ CGMI ”), Jefferies & Company, Inc. (“ Jefferies ”) and Jefferies Finance LLC (“ Jefferies Finance ” and together with MSSF, MSSFNS, MS, UBS, UBSS, JPM, JPMSI, BNS, CGMI and Jefferies, “ we ” or “ us ”) and will supersede such letter in all respects.

Loral Space & Communications Inc., a Delaware corporation (“ Loral ”), is the direct parent of Loral Space & Communications Holdings Corporation, a Delaware corporation (“ LSCH ”), which in turn is the parent of Loral Holdings Corporation, a Delaware Corporation, a Delaware Corporation (“ LHC ”). Loral or LSCH, together with PSPIB and Designee (each as hereinafter defined) has formed 4363205 Canada Inc., a Canadian corporation, which may be converted into an Alberta unlimited liability company prior to the Closing Date (as defined below) (“ Holdings ” or “ you ”), 1/3 of the voting stock of which will be owned by LHC and the remaining 2/3 of the voting stock of which will be owned by the Public Sector Pension Investment Board, a Canadian federal special Act corporation or a subsidiary thereof (“ `PSPIB ”) and two individuals (collectively, the “ Designee ”). You have advised us that a newly formed wholly owned indirect subsidiary of Holdings incorporated in Canada (“ AcquireCo ”) will acquire all of the capital stock of Telesat Canada, a Canadian corporation (the “ Target ”) and the Safe Income Notes (as defined in the Acquisition Agreement) issued by the Target (defined below), pursuant to a Share Purchase Agreement (including all exhibits, schedules and other ancillary documents, the “ Acquisition Agreement ”) among AcquireCo, BCE Inc., a Canadian corporation and owner of all the capital stock of the Target (“ Seller ”), and Target (the “ Acquisition ”). Promptly after the closing of the Acquisition, AcquireCo shall transfer the capital stock of the Target and the Safe Income Notes to a newly formed wholly owned subsidiary of AcquireCo incorporated in Canada (“ InterCo ”) and InterCo and the Target and certain of their affiliates will amalgamate. After giving effect to the Acquisition and the Target Refinancing (as hereinafter defined), Holdings will be a holding company that directly owns all of the equity interests in AcquireCo which will directly own all the equity interests in Interco. Certain assets of AcquireCo may be transferred to another wholly owned subsidiary of Holdings (“ SisterCo ”). Except as otherwise described in Annex I hereto, after giving effect to the Acquisition, AcquireCo is referred to herein as the “ Borrower .” Holdings, the Borrower, Interco and their subsidiaries are collectively referred to herein as the “ Companies .” JPM may provide its commitment hereunder or a portion thereof through any of its lending affiliates and the reference to “ JPM ” shall be deemed to include any such affiliate. For purposes of this Commitment Letter, “ Citigroup ,” shall mean CGMI, Citibank, N.A., Citicorp USA, Inc., Citicorp North America, Inc. and/or any of their affiliates as Citigroup shall determine to be appropriate to provide the services contemplated herein.

You have also advised us that either concurrently with or within one year after the Acquisition, AcquireCo or Holdings will acquire (the “ Skynet Purchase ”) all of the capital stock or substantially all of the assets of Loral Skynet Corporation, a Delaware corporation and a direct wholly owned subsidiary of LSCH (“ Skynet ”). The Skynet Purchase will not include the stock or assets of XTAR, L.L.C., Satelites Mexicanos S.A. de C.V., Globalstar, Inc., Enlaces Integra, S. de R.L. de C.V or Loral SatMex Ltd. As a result, the stock or assets of Skynet and the Target would be directly or indirectly wholly owned by Holdings. For clarity, Loral Skynet Corporation shall not be one of the Companies, unless and until the Skynet Purchase is consummated (except for inconsequential transactions which may be delayed with the consent of the Lead Arrangers), provided that with respect to any information required to be delivered or conveyed in connection with the syndication of each of the Facilities and the placement of the Notes, Loral Skynet Corporation shall be deemed to be one of the Companies, unless the context otherwise requires.

You have also advised us that you intend to finance the Acquisition for a purchase price of approximately $2.854 billion, the Skynet Purchase, the costs and expenses related to the Transaction (as hereinafter defined), the repayment of certain existing indebtedness of the Target (the “ Target Refinancing ”) and the redemption of the preferred stock, the repayment of notes of Skynet and the repayment of amounts owed to finance the construction, launch and insurance of Telstar 11N (collectively, the “ Skynet Refinancing ” and, together with the Target Refinancing, the “ Refinancing ”) and the ongoing working capital and other general corporate purposes of the Companies after consummation of the Acquisition from the following sources (and that no financing other than the financing described herein will be required in connection with the Transaction): (a) up to the US dollar equivalent of $2.179 billion in senior secured credit facilities of the Borrower (collectively, the “ Senior Credit Facilities ”), comprised of (i) a Canadian dollar denominated Term A Loan facility of up to Cdn$500 million, (ii) a Term B Loan facility of up to $1.054 billion (subject to adjustment as described herein), (iii) a delayed draw Term B-1 Loan facility of up to $386 million (the “ Term B-1 Loan Facility ”), which shall be available on a delayed draw basis for the purposes described under “Purpose” in Annex I hereto, (iv) a delayed draw Term B-2 Loan facility of up to $150 million (the “ Term B-2 Loan Facility ”), which shall be available on a delayed draw basis for the purposes described under “Purpose” in Annex I hereto, and (v) a Canadian dollar denominated revolving credit facility of up to the Canadian dollar equivalent of $150 million (none of which will be drawn upon consummation of the Acquisition except in connection with replacement or backstopping outstanding letters of credit of the Companies in an amount to be agreed and an additional amount, not to exceed an amount to be agreed which will be available to the extent of obligations in respect of hedging currency fluctuations); (b) at least $910 million in gross proceeds from the issuance and sale by the Borrower (and if requested by the Lead Arrangers, a corporate co-Borrower) of senior notes (the “ Notes ”) or, alternatively, up to $910 million of senior unsecured loans under a bridge facility (the “ Bridge Facility ” and, together with the Senior Credit Facilities, the “ Facilities ”) to the Borrower (such loans being the “ Bridge Loans ” and, together with any Rollover Loans and Exchange Notes (as defined in Annex II hereto), the “ Bridge Financing ”); and (c) common and preferred equity investments made in cash of not less than $525 million (the “ Equity Financing ”) by Loral or one of its subsidiaries, PSPIB and Designee (the “ Equity Investors ”). The Acquisition, the entering into and funding of the Senior Credit Facilities, the issuance and sale of the Notes or the entering into and funding of the Bridge Facility, the Target Refinancing and all related transactions are hereinafter collectively referred to as the “ Acquisition Transaction ”; the Skynet Purchase and the Skynet Refinancing are collectively referred to as the “ Skynet Transaction ”; and the Acquisition Transaction and Skynet Transaction are collectively referred to as the “ Transaction ”. The sources and uses for the financing for the Transaction are as set forth on Schedule I hereto. Immediately following the Acquisition Transaction, the Companies shall have no indebtedness for money borrowed or preferred stock outstanding other than the Facilities and the Notes, the preferred stock referred to above, capital leases not to exceed an amount to be determined and the preferred stock and indebtedness to be subject to the Skynet Refinancing. Unless otherwise noted, all references herein to “$” and all dollar amounts are to U.S. dollars.

You agree that no additional agents, co-agents or lead arrangers will be appointed, or other titles conferred, without the consent of the Lead Arrangers (such consent not to be unreasonably withheld). For the avoidance of doubt, the terms “Lead Arrangers”, “Senior Lead Arrangers” and “Bridge Lead Arrangers” shall not include JPMSI, BNS, Citigroup or Jefferies.

It is understood and agreed that the Lead Arrangers will manage and control all aspects of the syndication of each Facility in consultation with you, including decisions as to the selection of prospective Lenders and (subject to the immediately preceding paragraph) any titles offered to prospective Lenders, when commitments will be accepted and the final allocations of the commitments among the Lenders. It is understood that no Lender participating in either Facility will receive compensation from you in order to obtain its commitment, except on the terms contained herein and in the Summaries of Terms. It is also understood and agreed that the amount and distribution of the fees among the Lenders will be at the sole discretion of the Lead Arrangers.

You hereby acknowledge that (a) MS, MSSF, and/or MSSFNS will make available Information and Projections (collectively, “ Borrower Materials ”) to the proposed syndicate of Lenders by posting the Borrower Materials on IntraLinks or another similar electronic system (the “ Platform ”) and (b) certain of the proposed Lenders may be “public-side” Lenders ( i.e ., Lenders that do not wish to receive material non-public information with respect to the Borrower or its securities) (each, a “ Public Lender ”). You hereby agree that (w) you will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and include a reasonably detailed term sheet among such Borrower Materials and that all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “ PUBLIC ” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” you shall be deemed to have authorized MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance and the proposed Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Borrower or its securities for purposes of United States federal and state securities laws, it being understood that certain of such Borrower Materials may be subject to the confidentiality requirements of the definitive credit documentation; (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “ Public Investor ”; and (z) MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “ Public Investor .”

You also agree to indemnify and hold harmless MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance, each other Lender and each of their affiliates and their officers, directors, employees, agents, advisors and other representatives (each, an “ Indemnified Party ”) from and against (and will reimburse each Indemnified Party as the same are incurred for) any and all claims, damages, losses, liabilities and expenses (including, without limitation, the reasonable fees, disbursements and other charges of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) (a) any aspect of the Transaction or any related transaction and any of the other transactions contemplated thereby or (b) the Facilities and any other financings in connection with the Transaction, or any use made or proposed to be made with the proceeds, except, in each case, to the extent such claim, damage, loss, liability or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct. In the case of an investigation, litigation or proceeding to which the indemnity in this paragraph applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by you, your equity holders or creditors or an Indemnified Party, whether or not an Indemnified Party is otherwise a party thereto and whether or not any aspect of the Transaction is consummated. You also agree that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to you or your subsidiaries or affiliates or to your or their respective equity holders or creditors arising out of, related to or in connection with any aspect of the Transaction, except to the extent of direct (as opposed to special, indirect, consequential or punitive) damages determined in a final non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct. It is further agreed that each of MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance shall only have liability to you (as opposed to any other person), and that each of MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance shall be liable solely in respect of its own commitment to the Facilities on a several, and not joint, basis with any other Lenders, and that such liability shall only arise to the extent damages have been caused by breach of MS’s, MSSF’s, MSSFNS’s, UBS’s, UBSS’s, JPM’s, JPMSI’s, BNS’s, Citigroup’s, Jefferies’s or Jefferies Finance’s, as the case may be, obligations hereunder to negotiate in good faith definitive documentation for the applicable Facility on the terms set forth herein, as determined in a final, non-appealable judgment by a court of competent jurisdiction. Notwithstanding any other provision of this Commitment Letter, (a) no Indemnified Party shall be liable for any damages arising from the use by others of information or other materials obtained through electronic telecommunications or other information transmission systems and (b) you shall not be obligated to indemnify any Indemnified Party in its capacity as an advisor to the Target.

Notwithstanding anything in this Commitment Letter, the Fee Letter, the Facilities Documentation or any other letter agreement or other undertaking concerning the financing of the Transactions to the contrary, (i) the only representations relating to the Target, its subsidiaries and their businesses the making of which shall be a condition to availability of the Facilities on the Closing Date shall be (A) such of the representations made by the Target in the Acquisition Agreement as are material to the interests of the Lenders, but only to the extent that you have the right to terminate your obligations under the Acquisition Agreement as a result of a breach of such representations in the Acquisition Agreement and (B) the Specified Representations (as defined below) and (ii) the terms of the Facilities Documentation shall be in a form such that they do not impair availability of the Facilities on the Closing Date if the conditions set forth herein, in the Summaries of Terms and in Annex III hereto are satisfied (it being understood that, to the extent any Collateral (each as defined in the Summaries of Terms hereto) is not provided on the Closing Date after your use of commercially reasonable efforts to do so, except as provided in Annex III hereto, the delivery of such Collateral shall not constitute a condition precedent to the availability of the Facilities on the Closing Date but shall be required to be delivered after the Closing Date pursuant to arrangements to be mutually agreed) (it being understood that commercially reasonable efforts in this context shall mean at a minimum that UCC and Canadian PPSA filings have been filed for each of the Companies and stock certificates have been delivered). Those matters that are not covered by or made clear under the provisions of this Commitment Letter and the Summaries of Terms are subject to the approval and agreement of the Lead Arrangers and you; provided that such approvals and agreements shall be in a manner that is consistent with the Summaries of Terms and customary and appropriate for transactions of this type. For purposes hereof, “ Specified Representations ” means the representations and warranties set forth in the Summaries of Terms relating to corporate power and authority, the enforceability of the Facilities Documentation, compliance with margin regulations and status under the Investment Company Act.

You acknowledge that MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance or their respective affiliates may be providing financing or other services to parties whose interests may conflict with yours, other than competing bidders for the Target and its affiliates. However, be assured that, consistent with their longstanding policy to hold in confidence the affairs of their customers, none of MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies or Jefferies Finance will furnish confidential information obtained from you to any of their other customers, and each of them will treat confidential information relating to you, the Companies and your and their respective affiliates with the same degree of care as they treat their own confidential information. By the same token, none of MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies or Jefferies Finance will make available to you confidential information that they have obtained or may obtain from any other customer. In connection with the services and transactions contemplated hereby, you agree that each of MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance are permitted to access, use and share with any of their bank or non-bank affiliates, agents, advisors (legal or otherwise) or representatives, any information concerning you, the Companies or any of your or their respective affiliates that is or may come into the possession of any of them or any of such affiliates.

In connection with all aspects of each transaction contemplated by this letter, you acknowledge and agree, and acknowledge your affiliates’ understanding, that: (i) the Senior Credit Facilities and any related arranging or other services described in this letter is an arm’s-length commercial transaction between you and your affiliates, on the one hand, and MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance, on the other hand, and you are capable of evaluating and understanding and understand and accept the terms, risks and conditions of the transactions contemplated by this letter; (ii) in connection with each transaction contemplated hereby and the process leading to such transaction, MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance each is and has been acting solely as a principal and is not acting as an agent or fiduciary, for you or any of your affiliates, stockholders, creditors or employees or any other party; (iii) none of MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies or Jefferies Finance has assumed or will assume an advisory or fiduciary responsibility in your or your affiliates’ favor with respect to any of the transactions contemplated hereby or the process leading thereto (irrespective of whether MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies or Jefferies Finance has advised or is currently advising you or your affiliates on other matters) and none of MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies or Jefferies Finance has any obligation to you or your affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth in this letter and certain other letters under which advisory services are being offered; (iv) MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from yours and your affiliates and MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance have no obligation to disclose any of such interests by virtue of any fiduciary or advisory relationship; and (v) MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance have not provided any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby and you have consulted your own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate. You hereby waive and release, to the fullest extent permitted by law, any claims that you may have against MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance with respect to any breach or alleged breach of fiduciary duty.

MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance hereby notify you that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “ Act ”), each of them is required to obtain, verify and record information that identifies you, which information includes your name and address and other information that will allow any of them, as applicable, to identify you in accordance with the Act.

This Commitment Letter and the Fee Letter shall be governed by, and construed in accordance with, the laws of the State of New York. Each of you, MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance hereby irrevocably waives all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Commitment Letter (including, without limitation, the Summaries of Terms), the Fee Letter, the Transaction and the other transactions contemplated hereby and thereby or the actions of MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance in the negotiation, performance or enforcement hereof. Each of you, MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance hereby irrevocably submits to the jurisdiction of any New York State court or Federal court sitting in the Borough of Manhattan in New York City in respect of any suit, action or proceeding arising out of or relating to the provisions of this Commitment Letter (including, without limitation, the Summaries of Terms), the Fee Letter, the Transaction and the other transactions contemplated hereby and thereby and irrevocably agrees that all claims in respect of any such suit, action or proceeding may be heard and determined in any such court. Each of you, MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceedings brought in any such court, and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

This Commitment Letter, together with the Summaries of Terms and the Fee Letter, embodies the entire agreement and understanding among MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies, Jefferies Finance you and your and their affiliates with respect to the Facilities and supersedes all prior agreements and understandings relating to the subject matter hereof. No party has been authorized by MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance to make any oral or written statements that are inconsistent with this Commitment Letter.

This Commitment Letter is not assignable by you without our prior written consent and is intended to be solely for the benefit of the parties hereto and the Indemnified Parties.

In respect of any judgment or order given or made for any amount due to any person under the Commitment Letter or the Fee Letter that is expressed and paid in a currency (the “ judgment currency ”) other than United States dollars, you will indemnify such person against any loss incurred by such person as a result of any variation as between (i) the rate of exchange at which the United States dollar amount is converted into the judgment currency for the purpose of such judgment or order and (ii) the rate of exchange at which such person is able to purchase United States dollars with the amount of the judgment currency actually received by such person. The foregoing indemnity shall constitute a separate and independent obligation of yours and shall survive any termination of the Commitment and Fee Letters, shall continue in full force and effect notwithstanding any such judgment or order as aforesaid. The term “rate of exchange” shall include any premiums and costs of exchange payable in connection with the purchase of or conversion into United States dollars.

All commitments and undertakings of MSSF, MSSFNS, UBS, JPM, BNS and Citigroup under this Commitment Letter with respect to the Senior Credit Facilities will expire at 12:30 p.m. (New York City time) on February 1, 2007 unless you execute this Commitment Letter as provided below and the Fee Letter as provided therein to accept such commitments and return them to us prior to that time. All commitments and undertakings of MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance hereunder with respect to the Bridge Facility will also expire at that time unless you execute this Commitment Letter and the Fee Letter and return them to us prior to that time. Thereafter, all accepted commitments and undertakings of MSSF, MSSFNS, UBS, JPM, BNS, Citigroup, Jefferies and Jefferies Finance hereunder will expire on the earliest of (a) the date that is three-hundred sixty five days from December 16, 2006 (subject to extension in the discretion of MS, MSSF, MSSFNS, UBS, UBSS, JPM, JPMSI, BNS, Citigroup, Jefferies and Jefferies Finance), unless the Closing Date occurs on or prior thereto, (b) the closing of the Acquisition, and (c) the termination of the Acquisition Agreement in accordance with the terms thereof.

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1

We are pleased to have the opportunity to work with you in connection with this important financing.

Very truly yours,

2

Title: Managing Director

3