Globalstar forbearance extended through May 6; exchange talks progress

By Caroline Salls

Pittsburgh, April 29 - Globalstar, Inc. said the forbearance agreement related to its 5.75% convertible senior notes due 2028 has been extended through 11:59 p.m. ET on May 6 as negotiations with forbearing noteholders continues.

According to a company news release, the extension will also give Globalstar more time to obtain consents from senior secured lenders for an exchange transaction.

"We continue to work with the noteholders to finalize the terms of an exchange transaction and with the company's secured lenders to seek their approvals regarding the proposed exchange," chairman and chief executive officer Jay Monroe said in the release.

"We have made significant progress over the past week and look forward to being able to complete the process in the near-term."

As previously reported, the forbearance agreement covers a default stemming from Globalstar's failure to either repurchase existing notes on the April 1 put date or make its April 1 interest payment.

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

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