SAN JOSE, Calif.-Bankrupt mobile satellite services company Globalstar announced a new reorganization plan to secure $43 million in financing, effectively canceling its expected acquisition by ICO Global Communications Ltd.
Instead, the reorganized Globalstar would be majority owned by Thermo Capital Partners, which would hold 81.25-percent ownership in exchange for $43 million. Globalstar said it would distribute the remaining 18.75-percent interest in the new company to its creditors. The U.S. Bankruptcy Court is expected to review the motion for the proposed transaction Thursday.
Under Globalstar’s previous reorganization plan, the company would have become majority owned by ICO Global Communications, which planned to invest $55 million in the company for a 54-percent equity stake. That transaction, which was put before the Federal Communications Commission in May, has been delayed for months following concerns from the Justice Department and FBI regarding the merger.
