Globalstar asks court to approve $43 million bid from Thermo Capital

Chicago, Nov. 18 - Globalstar said it has obtained a $43 million cash bid from Thermo Capital Partners and is asking for court approval for the transaction.

In return for the investment, Thermo will receive 81.25% ownership of a new company that would take control of Globalstar's assets and operations.

The remaining 18.75% of the equity in the new company will be available to Globalstar for distribution to creditors.

Creditors will also have the right to purchase additional equity interests up to a total of 33.87%.

The new agreement would replace Globalstar's May 2003 agreement with ICO Global Communications Ltd., under which ICO intended to acquire Globalstar.

The U.S. Bankruptcy Court, District of Delaware is expected to review the motion at a hearing on Nov. 20, Globalstar said.

Under the previous agreement with ICO, ICO would have invested $55 million in exchange for 5.4 million shares of new Globalstar class B common stock. Globalstar and GLP subsidiary debtors would have contributed all their assets in exchange for 4.6 million shares of new class A common stock.

Globalstar said in a news release that management is confident that the acquisition by Thermo will ensure the company's future.

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