Globalstar exits Chapter 11, launches new initiatives

By Jeff Pines

Washington, April 15 - Globalstar said it exited Chapter 11 following the acquisition by Thermo Capital Partners LLC of an 81.25% stake in the company. Thermo Capital made a $43 million investment in the handheld satellite-telephone service company in return for the equity.

The creditors of Globalstar LP, the reorganized company's predecessor, will get the remainder of the equity.

The company plans to take eight spare satellites out of storage and prepare them for launch possibly next year or in 2006. It already has 48 satellites in service, according to the company's web site.

Improving service in the Caribbean is another initiative for the company. Globalstar said it hopes to sign a lease shortly for a new gateway in Florida. A gateway receives the signal from the satellite and then transmits it through fixed or cellular networks.

Later this month, Globalstar said it plans to add fax service and that it will resume or accelerate new product development.

Also, the company said it is now offering data services specifically tailored for the maritime, homeland defense, oil and gas extraction as well as other markets.

Another Thermo approved initiative is for Globalstar to start working on an Alaskan gateway to cover the entire state as well as the North Pacific and Bering Strait areas.

Globalstar filed for Chapter 11 on Feb. 15, 2002 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 02-10504.

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