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Statement from Van Greenfield, Chairman of Globalstar LP Creditors Committee
New York - Nov 25, 2003 Globalstar, LP, a satellite telephone company, received approval on November 20 in a court hearing before Judge Peter Walsh at the U.S. Bankruptcy Court in Wilmington, Delaware for a sale of its assets to Thermo Capital Partners LLC. The Court also granted a $1.9 million break-up fee and other bidder protections for Thermo. During the Court hearing, Cogent Communications Group, Inc. (American Stock Exchange Symbol COI) also indicated its desire to engage in a transaction. Cogent believes that its offer, based on the last 20 days average closing prices of Cogent stock, would include more than $100 million in fully registered, freely tradable Cogent stock to be distributed to Globalstar creditors. The Creditors Committee is in the midst of its due diligence on the proposed Cogent transaction and has no opinion on this valuation. Under the terms of the Thermo deal, Thermo will pay $43 million in cash and assume $10 million in debt in exchange for Globalstar's assets and an 81.25 percent stake in the new company. Globalstar will retain the remaining 18.75 percent to pay unsecured creditors. In addition, Globalstar's creditors will have the right to purchase additional equity interests in the reorganized company. It is expected that the parties to the Thermo transaction shall execute definitive documents by December 2, 2003. The possibility exists that some other party may make an offer to purchase substantially all of the assets of Globalstar. In such event, Globalstar and its Official Creditors Committee will review any such offer to determine whether it represents more value than the Thermo transaction. Statement by Van Greenfield, Chairman of the Official Committee of Unsecured Creditors for Globalstar, LP: "I am pleased with the outcome of the November 20 hearing before Judge Walsh in the U.S. Bankruptcy Court in Wilmington, Delaware. "The hearing established Thermo as the current highest and best offer for the primary assets of Globalstar. Cogent Communications also outlined a competing offer during courtroom proceedings. Consistent with its fiduciary duties, the Creditors Committee is actively evaluating this proposal and is conducting due diligence to make a final recommendation to the Court." Community Email This Article Comment On This Article Related Links Globalstar SpaceDaily Search SpaceDaily Subscribe To SpaceDaily Express Satellite Constellation - multiple satellite deployments in LEO and Beyond
Royal National Lifeboat Institution Tests Iridium Based Satellite Tracking System
Bethesda MD (SPX) Dec 20, 2005The Royal National Lifeboat Institution (RNLI) has begun testing a maritime safety system for automatic vessel monitoring and emergency alerting at sea using the Iridium satellite network. |
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