Subject: [NEXTEL-1] Globalstar Reaches New Financing Agreement

From: Marcel <[email-masked]>
Date: Thu, 20 Feb 2003 03:27:03 -0500

Globalstar Reaches New Financing Agreement

Globalstar, a provider of hand-held satellite phone service, has reached a
preliminary agreement with a group of five lenders, who will provide interim
debtor-in-possession (DIP) financing to Globalstar, subject to court approval.
Under the terms of the agreement, the consortium of five lenders will make a
total of $10 million available to Globalstar, giving the company necessary
working capital while it moves toward a final restructuring plan that would allow
it to emerge from Chapter 11 protection later this year. The five lenders
providing the DIP financing are: Blue River Capital LLC; Columbia Ventures
Corporation; ICO Investment Corp.; Iridium Investors, LLC; and Loeb Partners
Corp. Three of the lenders are members of the Official Committee of Unsecured
Creditors of Globalstar. "The recent ruling by the FCC, allowing us to
implement an integrated satellite and terrestrial wireless system in the future,
was a significan t development for our business," said Olof Lundberg, chairman
of Globalstar. "We believe that this ruling, together with our record of continuing
growth despite challenging circumstances, has helped to attract the interest of
potential new investors, and that this new financing agreement will be an
important step toward our successful emergence from bankruptcy."

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