February 16, 2002 |
Globalstar said Friday that it filed for Chapter 11 bankruptcy protection, as it had warned it would three months ago, under a restructuring plan worked out in advance with its major creditors. Globalstar was launched in 1994 with the goal of creating a global mobile telephone system for business travelers and others but was hurt by high operating costs, heavy and unattractive handsets and the steep rates charged to customers.
November 14, 2001 |
Troubled satellite phone provider Globalstar announced plans to restructure its business and file for bankruptcy protection. The San Jose-based company, which was founded by several leading telecommunications firms, said it is negotiating a deal with creditors so it can continue to provide service. Under the bankruptcy filing expected by the end of the year, all partnership interests probably will be severely diluted, meaning they would have little value or be eliminated entirely.
August 14, 2001 |
Globalstar Telecommunications Ltd., a satellite-telephone firm, said it will eliminate about half its work force in the next month, leaving 175 to 180 full-time employees in the third quarter. Globalstar said it had $98 million in cash on June 30, enough to last through the end of this year. New York-based Globalstar defaulted in January when it stopped paying down its debt. Globalstar, which is part owned by Loral Space & Communications Ltd., also said its second-quarter loss narrowed to $37.
July 4, 2001 |
Qualcomm Inc. withdrew its offer to become a lead investor in a restructuring plan to save troubled satellite telephone company Globalstar, leaving Globalstar scrambling for another plan, sources close to the situation told Reuters on Tuesday. The sources also said TE.SA.
May 16, 2001 |
Globalstar, a provider of mobile telephone service via satellite, posted a wider first-quarter loss and said it continues to review various restructuring proposals, even as it defaulted on debt and took three satellites out of service due to operational problems. The company also said Bernard Schwartz resigned as chairman and chief executive as part of the company's overall restructuring. Olof Lundberg, who previously led rival ICO Global Communications Ltd., was named to succeed Schwartz.
April 3, 2001 |
Globalstar, the holding company that owns Globalstar Telecommunications Ltd., said it may shut down by the end of this year if it is unable to raise more cash, according to a filing with the U.S. government. Globalstar had $197 million in cash and cash equivalents at the end of 2000, enough to last through 2001, it said in a filing with the Securities and Exchange Commission. The company's largest shareholder is Loral Space & Communications Ltd.