Globalstar signed a forbearance agreement with the holders...
Globalstar signed a forbearance agreement with the holders of more than 75 percent of its 5.75 percent convertible senior notes due in 2028. The agreement is intended to give Globalstar a further opportunity to negotiate a restructuring of the notes,…
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it said in a press release. Globalstar and the holders of the notes are negotiating terms of a potential restructuring arrangement of the notes “with the objective of reaching agreement by the end of the forbearance period,” it said. The company was required to deposit with the trustee, by April 1, “cash equal to the purchase price of $70,654,000 to effect the purchase of the notes from the exercising holders,” it said. Globalstar said it doesn’t have sufficient funds to pay this purchase price. Its failure to make a $2,064,365 interest payment by April 30 “would also constitute an event of default under the notes,” it said.