Posted: Mon, Dec 8, 2003, 6:46 PM ET (2346 GMT)
An investment company has finalized an agreement to acquire bankrupt satellite communications company Globalstar, the two companies announced Monday. Thermo Capital Partners will spend $43 million to take an 81.25% stake in Globalstar under an agreement first announced last month. Globalstar will retain the remaining 18.75% for later distribution to its creditors; those creditors will later be able to expand their stake in the company to 36.37%. Globalstar had been in Chapter 11 bankruptcy protection since February 2002 and, after spurning an earlier offer from Thermo and one other investment firm, agreed to join forces with another satellite communications company, ICO. That agreement fell through last month, though, when ICO claimed that Globalstar had not met an unspecified condition of the investment agreement. The acquisition process, which includes creating a new company under the Globalstar name that will take the assets of the existing company, should be completed in the first quarter of 2004. Globalstar executives said the acquisition will permit an "accelerated business expansion plan" later next year, allowing the company to offer new products and services.

Related Links:

•  Globalstar press release
•  Space News article (subscription required)
•  The Australian article