Posted: Thu, Apr 15, 2004, 10:14 PM ET (0214 GMT)
Satellite communications company Globalstar announced Thursday that it has completed a long-awaited financial restructuring. Under terms of an agreement that was finalized in December, investment group Thermo Capital Partners purchased for $43 million an 81.25% share of a new Globalstar company that has the assets of the original firm. The remainder of the company is owned by creditors of the original company. Globalstar deployed a constellation of 52 low Earth orbit communications satellites in 1998-2000 to provide global satellite phone service in competition with Iridium, but had to file for Chapter 11 bankruptcy protection in early 2002. With the restructuring now complete Globalstar plans to press ahead with several initiatives, including the construction of new gateway ground stations in Alaska and Florida to provide service in the north Pacific and the Caribbean, respectively, as well as expanded fax and data service. The company also said it is preparing to launch eight spare satellites as soon as late 2005 or early 2006.
