Cogent contender gets approval for Globalstar bid

A bankruptcy judge has approved Thermo Capital Partners’ bid to acquire the assets of satellite phone provider Globalstar, superceding a bid by metro Ethernet provider Cogent Communications. Thermo Capital offered to pay $43 million in cash and assume $10 million in debt in exchange for Globalstar's assets and an 81.25% stake in the new company. Globalstar would retain the remaining 18.75% to pay unsecured creditors. Cogent’s offer, which is still being reviewed by Globalstar’s creditors committee, would grant Globalstar creditors more than $100 million in Cogent stock, based on the average closing price for the last 20 days. Cogent would not comment further on the matter.