Globalstar forbearance extended through May 13 amid exchange talks

By Jennifer Chiou

New York, May 6 - Globalstar, Inc. announced that the forbearance agreement related to its 5.75% convertible senior notes due 2028 has been extended by one week through 11:59 p.m. ET on May 13 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.

"This latest extension was necessary as we continue the process of seeking necessary approvals from the company's secured lenders," chairman and chief executive officer Jay Monroe said in the release.

"We believe that we are in the final stages of negotiating the transaction and look forward to completing an exchange transaction that satisfies all participants."

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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