Globalstar seeks new buyer

3 Feb 2003

Investment group New Valley Corporation has pulled out of an agreement to purchase beleaguered mobile satellite firm Globalstar for USD55 million. The bankrupt operator’s creditor committee has, however, agreed to provide USD12 million in interim funding to enable it to seek a new buyer; with a current cash burn rate of around USD4 million per month Globalstar will have to move quickly, but remains confident of its ability to negotiate a new deal.