Posted: Fri, Apr 4, 2003, 9:34 PM ET (0234 GMT)
Bankrupt satellite phone operator Globalstar announced Friday that it has selected an investment group to acquire a majority of the company and lead it out of bankruptcy. Globalstar said it had selected a bid by Thermo Capital Partners to acquire two-thirds of the company for $55 million. Globalstar's creditors, notably Loral and Qualcomm, will retain the other third of the restructured company as it exits Chapter 11 bankruptcy protection. Thermo, based in Denver and New Orleans, owns a number of telecommunications, energy, and real estate companies; Globalstar is the only satellite industry company in its portfolio. The agreement comes nearly three months after another investment company, New Valley, made a similar bid for Globalstar that was eventually rejected by creditors who thought they could get a better deal. The investment must still win the approval of a bankruptcy court, with a ruling expected to come later this month.
