Posted: Thu, Jan 16, 2003, 8:11 AM ET (1311 GMT)
A company primarily involved in real estate investments announced Wednesday that it will spend $55 million to acquire a controlling interest in bankrupt satellite communications company Globalstar. New Valley Corporation said that it will provide $20 million in immediate debtor-in-possession financing to keep the company operating, then spend $35 million to acquire a majority interest in the company. The rest of the company will be owned by its two major creditors, Loral and Qualcomm. New Valley, a publicly-traded Miami-based company that primarily invests in commercial real estate, is led by Bennett LeBow, an investor who has acquired companies in the past ranging from Western Union to the Liggett Group tobacco company. Globalstar has been operating under Chapter 11 bankruptcy protection for nearly one year; the investment would permit the company to emerge from Chapter 11 but no timetable was given. Outside analysts were skeptical that any investment would be able to turn Globalstar into a profitable company.

Related Links:

•  New Valley press release
•  Reuters article
•  Space News article (subscription required)
•  New York Times article