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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (25248)	9/26/2002 12:55:17 PM
From: ebg51	Read Replies (4) \| Respond to of 29986

Bernie Does the G* Shuffle! Dow Jones Business News Court Reschedules Globalstar LP's Disclosure Stmt Hearing Thursday September 26, 12:33 pm ET WILMINGTON, Del. -(Dow Jones)- A bankruptcy court Thursday rescheduled a hearing to consider approval of Globalstar L.P.'s disclosure statement to give the company time to deal with objections to the document. ADVERTISEMENT Chief Judge Peter J. Walsh of the U.S. Bankruptcy Court in Wilmington will consider the matter Oct. 24 at 11 a.m. The hearing was originally slated for July. Objections to the adequacy of the debtor's disclosure statement have been filed by the office of the U.S. Trustee, a plaintiff in a class-action lawsuit, and the Clifton Independent School District. The proposed reorganization plan would give noteholders and other general unsecured creditors 97% of the reorganized company's common stock, subject to dilution when shares are issued to independent satellite gateway operators and management, according to court documents. Loral Space & Communications Ltd. would receive the remaining 3% of reorganized Globalstar's equity, subject to dilution, in exchange for its 49.9% stake each in Globalstar Canada Satellite Co. and ATSS/Loral Netherlands BV, according to the disclosure statement that Globalstar filed May 23 along with the plan. Independent gateway operators would receive options to buy up to 5% of the new common stock, before taking into account shares issued to the reorganized Globalstar's management, which could receive up to 10% of the new equity. Globalstar is a general partner of Globalstar Telecommunications Ltd. (GSTRF) , which is not under bankruptcy protection. The U.S. Trustee's office objects to the disclosure statement on the basis that it doesn't provide adequate information. A disclosure statement should explain the plan and expose the plan's provisions, "not merely repeat them," according to the objection. Globalstar's disclosure statement "does not provide information that would enable a reasonable hypothetical investor" to make an informed judgment about the company's proposed plan, the filing said. Joe F. Moore is the plaintiff in a class-action lawsuit filed against Loral and certain of its directors. The suit alleges the defendants violated federal securities laws by misrepresenting or failing to disclose the true financial condition of Globalstar. In his objection, Moore said the disclosure statement is inadequate because " it is unclear as to whether the debtor is attempting to release third-party claims against defendants" and, if it is attempting to provide a release, "it provides no basis for such a release." Globalstar L.P., San Jose, which operates a worldwide, low-Earth orbit satellite-based digital telecommunications system, filed for bankruptcy Feb. 15. The company listed assets of $573.4 million and liabilities of $3.34 billion in its Chapter 11 petition. -By Tom Becker, Dow Jones Newswires; 302-656-8830 Related Quotes GSTRF.OB LOR 0.17 0.31 +0.014 +0.01 News News View Detailed Quotes Delayed 20 mins Quote data provided by Reuters Related News Stories · LORAL SPACE & COMMUNICATIONS LTD FILES (8-K) Disclosing Other Events and Financial Statements & Exhibits - EDGAR Online (Wed Sep 25) · Loral Improves Preferred Stock Exchange Offer - Dow Jones Business News (Wed Sep 25) · Loral sweetens preferred stock exchange offer - Reuters Market News (Wed Sep 25) · Loral Improves Preferred Stock Exchange Offer - Business Wire (Wed Sep 25) More... Copyright © 2002 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service Copyright © 2002 Dow Jones. All rights reserved.