Globalstar notes default forbearance deal extended through April 29

By Caroline Salls

Pittsburgh, April 22 - Globalstar, Inc.'s forbearance agreement related to its 5.75% convertible senior notes due 2028 was extended through 11:59 p.m. ET on April 29 as negotiations with the forbearing noteholders continue, according to a company news release.

The company said the extension will allow additional time to obtain required consents from its senior secured lenders regarding an exchange transaction.

In exchange for the extension, Globalstar has agreed to issue shares of its voting common stock to the forbearing noteholders who have executed the most recent amendment if an exchange transaction is not completed within five days after the end of the forbearance period.

"We look forward to a successful exchange transaction and will continue to provide updates regarding this process," chairman and chief executive officer Jay Monroe said in the release.

As previously reported, the forbearing noteholders have agreed not to exercise their rights arising from the company's failure to either repurchase the existing notes on the April 1 put date or make its April 1 interest payment.

According to the release, the company's other series of senior unsecured notes include cross acceleration provisions which may be triggered by an acceleration of the 5.75% notes if the acceleration is not rescinded within 30 days.

Based in Covington, La., Globalstar is a provider of mobile voice and data communications services via satellite.

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