Globalstar planning bankruptcy, reorganization
Posted: Wed, Nov 14, 2001, 9:47 AM ET (1447 GMT)
Satellite communications company Globalstar announced late Tuesday that it will soon file for bankruptcy protection as part of a reorganization scheme. In a press release issued after the close of the markets Tuesday, the company said that it would voluntarily file for Chapter 11 bankruptcy protection in the near future. The filing would be the first step in a restructuring plan to create a new Globalstar company with a more viable business plan. Under the restructuring, the company warns that existing equity would be strongly diluted, making Globalstar stock nearly, if not entirely, worthless after the restructuring. The company said that it will provide uninterrupted service during this restructuring, and added that its satellite constellation is working well, with only one of its 48 satellites currently out of operation. Globalstar made the announcement the same day it released its fiscal third quarter results, showing a loss for the quarter of $129 million.
Satellite communications company Globalstar announced late Tuesday that it will soon file for bankruptcy protection as part of a reorganization scheme. In a press release issued after the close of the markets Tuesday, the company said that it would voluntarily file for Chapter 11 bankruptcy protection in the near future. The filing would be the first step in a restructuring plan to create a new Globalstar company with a more viable business plan. Under the restructuring, the company warns that existing equity would be strongly diluted, making Globalstar stock nearly, if not entirely, worthless after the restructuring. The company said that it will provide uninterrupted service during this restructuring, and added that its satellite constellation is working well, with only one of its 48 satellites currently out of operation. Globalstar made the announcement the same day it released its fiscal third quarter results, showing a loss for the quarter of $129 million.
Related Links:
| <<previous article | next article>> |
|
news in brief
|
|
|
|
news links
|
|
Tuesday, January 14
Firefly’s Blue Ghost Prepped For Lunar Mission Debut
Aviation Week — 4:22 am ET (0922 GMT) Britt, Tuberville resolution challenges Biden's reversal on Huntsville as Space Command HQ
WABM-TV Birmingham, AL — 4:21 am ET (0921 GMT) Alabama lawmakers mark anniversary of Space Command HQ recommendation with new resolutions
WZDX-TV Huntsville, AL — 4:21 am ET (0921 GMT) On key Space Command decision anniversary, Alabama officials urge Trump to make Huntsville permanent HQ
Huntsville Times — 4:21 am ET (0921 GMT) Launch of Jeff Bezos' Blue Origin rocket postponed due to 'vehicle subsystem issue'
BBC — 4:18 am ET (0918 GMT) |
