Globalstar, the world’s most
widely-used handheld satellite phone service, today announced the completion
of its auction to select an equity investor who will fund the company toward
the completion of its Chapter 11 process. Globalstar, in consultation with
its official committee of unsecured creditors, selected Thermo Capital
Partners as the successful bidder.
>Under its proposal, which is subject to approval by the U.S. Bankruptcy
Court in Delaware, Thermo will invest up to $55 million in exchange for a 67%
stake in Globalstar. The remainder of the equity will be held by the
company’s creditors, which include Loral Space & Communications, Qualcomm
Incorporated and holders of Globalstar L.P. bonds.
Today’s announcement represents the conclusion of a seven-week,
court-approved process in which Globalstar and the creditors’ committee worked
with several potential investors toward the final auction earlier this week.
As next steps, Globalstar will seek confirmation of the auction results by the
Bankruptcy Court and will work with Thermo to document the proposal.
Thermo Capital Partners is part of the Thermo Companies, based in New
Orleans, LA, and Denver, CO, a highly successful group of privately-held
companies focused on opportunities in the telecommunications, power
generation, natural resources and real estate industry. For more information,
visit the Thermo website at www.thermocompanies.com.
Globalstar is a leading provider of global mobile satellite
telecommunications services, offering both voice and data services from
virtually anywhere in over 100 countries around the world. For more
information, visit Globalstar’s web site at www.globalstar.com.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 and within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements, including but not limited to
statements regarding the transactions between Thermo Capital Partners and
Globalstar, provide expectations of future events. Actual events could differ
materially from those reflected in the forward-looking statements contained in
this press release because of various risks, uncertainties and other factors,
including but not limited to those relating to the confirmation of the auction
results by the Bankruptcy Court, the ability of Thermo and Globalstar to reach
definitive documentation, the bankruptcy reorganization process generally and
the approval of the transaction proposed by Thermo by the Bankruptcy Court in
particular, the receipt of required governmental approvals and the
satisfaction of other conditions that will be contained in the definitive
documentation. As a result, no assurance can be given as to whether or when
the transactions proposed by Thermo will occur.
CONTACT: Mac Jeffery of Globalstar, +1-212-338-5383, or
mac.jeffery@globalstar.com; or Jim Lynch of Thermo Capital Partners,
jim@thermoco.com; or Globalstar Investors, The Abernathy MacGregor Group,
+1-877-566-7607.
