Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: pcstel who wrote (25513)	5/1/2003 3:33:15 PM
From: Jon Koplik	Respond to of 29986

WSJ story on QCOM / reorganized Globalstar ................ May 1, 2003 Qualcomm Likely To Get Stake In Reorganized Globalstar By TOM BECKER Of DOW JONES NEWSWIRES NEW YORK -- Qualcomm Inc. (QCOM) will likely receive an equity stake in Globalstar L.P. once Globalstar emerges from Chapter 11 bankruptcy protection. Globalstar Telecommunications Ltd. (GSTRF) is a general partner of Globalstar. Globalstar owes Qualcomm more than $600 million in debt accrued prior to its February 2002 Chapter 11 bankruptcy filing. The satellite communications company was established by Qualcomm and Loral Space & Communications Ltd. (LOR) in 1994 and has since spent about $4 billion on building its network. "The debt is probably going to be converted into equity in the (reorganized) Globalstar," said Dick Grannis, vice president and treasurer of Qualcomm. "The details of that should be worked out soon." The news comes after ICO Global Communications Ltd. on Friday won bankruptcy court approval to purchase a 54% equity stake in Globalstar for $55 million. With the Globalstar-ICO Global deal approved, Qualcomm, Loral and other creditors will likely share the remaining 46% equity stake in the company, said Mac Jeffrey, a Globalstar spokesman. Globalstar will likely file a plan of reorganization detailing the equity distribution later this month, Jeffrey said. The bankruptcy court must confirm the plan before it can go effective. Qualcomm, which is Globalstar's second-largest creditor behind a group of bondholders, supported the sale despite the fact that its debt remains outstanding. "We do view the sale and Globalstar's eventual return to business as a good thing," Grannis said. "Globalstar offers a great service and we expect it to perform well." ICO Global, which is run by wireless communications pioneer Craig O. McCaw, emerged from bankruptcy itself in May 2000 after McCaw and a group of investors provided $1.2 billion to acquire the company. Since then, ICO Global has acquired Constellation Communications Holdings Inc. and Mobile Communications Holdings Inc. ICO Global's $55 million bid was selected over an offer valued at $55 million from Thermo Capital Partners LLC. Thermo's bid included $35 million in cash up-front and $20 million in cash to be invested at an unspecified later date. -By Tom Becker, Dow Jones Newswires; 201-938-2020 Updated May 1, 2003 12:39 p.m. Copyright © 2003 Dow Jones & Company, Inc. All Rights Reserved.