SAN JOSE, Calif.-Bankrupt mobile satellite service provider Globalstar L.P. and its subsidiaries have filed a joint plan of reorganization, according to a recent filing with the Securities and Exchange Commission.
The plan follows news earlier this year that ICO Global Communications would invest $55 million in the company for a 54-percent equity stake in a reorganized Globalstar. Under the proposed reorganization plan, Globalstar will distribute new class A common shares as part of the ICO investment. Meanwhile, outstanding partnership interests and other interests of Globalstar will be canceled, and holders of those interests will receive nothing. Globalstar and its subsidiaries in bankruptcy will wind down all operations not included in the business purchased by ICO.
