spacetoday.net: ICO purchase of Globalstar could fall through

Posted: Mon, Oct 27, 2003, 5:42 PM ET (2242 GMT)
Globalstar satellite illustration

Satellite communications company Globalstar said Monday that it has received permission to reopen talks with other potential investors after an earlier agreement with rival ICO appeared in danger of collapsing. In April ICO agreed to acquire a majority interest in Globalstar, which had been in Chapter 11 bankruptcy protection since early 2002. However, Globalstar announced Monday that ICO now believes that an unspecified condition of the sale agreement "likely will not be satisfied", opening the possibility that the deal itself could fall through. ICO has thus given Globalstar permission to talk with other potential investors in that event, and Globalstar said that it has "already initiated discussions with a number of potential investors." Globalstar continues to operate a constellation of satellites in low Earth orbit that provide phone and data services.