Globalstar announced new preliminary financing agreement worth $1...
Globalstar announced new preliminary financing agreement worth $10 million with 5 different investors. Company recently turned down $55 million in financing from New Valley Corp. due to “inability to reach a final agreement,” latter said (CD Jan 31 p9).…
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Investors include ICO Investment Corp. and Iridium Investments, N.Y.-based Blue River Capital and Loeb Partners, and Columbia Ventures in Vancouver, Wash., Globalstar said. Investors will provide debtor-in-possession (DIP) financing, but funds won’t be available until plan is approved by bankruptcy court. “This DIP financing will give us time to initiate an efficient, transparent process for seeking the best final offer for ultimate ownership of our business,” Globalstar Chmn. Olof Lundberg said. Additional investment offers will be considered via bidding process being set up by company. Bidding should be complete by 2nd- quarter, Globalstar said.