Globalstar emerges from bankruptcy

Satellite phone service provider Globalstar today emerged from Chapter 11 debt-free and with additional commitments from its new owners Thermo Capital Partners for an infusion of $43 million to grow its global communications business.

Globalstar spent more than two years in bankruptcy, but managed to grow its customer base three times as it sought out new investors and negotiated with its bondholders. Now the company has 110,000 subscribers to its satellite phone service, as well as plans to launch new satellites into orbit in 2005 and 2006 and plans to offer enhanced data services.

"Although we’ve had some difficult days and we’ve had some doubters in our service, we never stopped our service while restructuring," said Tony Navarra, CEO of Globalstar. "If we can triple our business and gain significant ARPU while we’re in Chapter 11, think of what we can do going forward."

Under the agreement Thermo now owns 81.25% of Globalstar in exchange for its $43 million investment. The remaining equity was distributed among Globalstar’s former creditors.

Globalstar offers satellite voice and data access to remote areas and over the ocean, providing critical communications in unpopulated areas and to sea-vessels. As part of its restructuring, Globalstar plans to expand into new markets for the first time in two years, launching a new Caribbean gateway in 2004 and an Alaskan gateway further in the future. Globalstar is also planning to launch a fax service and data services targeted at specific vertical industries, such as maritime, oil and gas, homeland security and international transport.