COVINGTON, La., April 15, 2013 (GLOBE NEWSWIRE) -- Globalstar, Inc. (OTCBB:GSAT) announced today that the previously announced forbearance agreement with respect to the Company's 5.75% Convertible Senior Notes due 2028 (the "Existing Notes") has been extended. The amendment extends the forbearance period through 11:59 pm (ET) on April 22, 2013. The extension will provide additional time for the Company to continue negotiations and documentation with the forbearing noteholders with respect to the terms of a restructuring transaction and to obtain consents from the Company's senior secured lenders to the transaction. To the extent this process is not complete by April 22, 2013 the forbearance agreement may be extended further by agreement of the parties; however, there is no assurance any further extension will be provided. Since the initial execution of the forbearance agreement, additional holders of the Existing Notes have joined in the agreement, increasing the percentage of forbearing holders from 78% to 85% of the principal amount of the Existing Notes outstanding.
Jay Monroe, Globalstar's Chairman and CEO, said, "We are very pleased to announce the extension of the forbearance agreement. We look forward to continuing to work with the noteholders and our senior secured lenders towards completing a restructuring transaction. All parties have negotiated and continue to negotiate in good faith, and we thank them for their continued efforts."
Any restructuring arrangement for the Existing Notes is subject to final negotiation and execution of definitive agreements. Globalstar is seeking the consent of the lenders under its senior secured credit facility to the restructuring; however, there is no assurance such consent will be obtained. Until definitive agreements are negotiated in their entirety and executed, and the transactions contemplated thereby are consummated, there can be no assurance that any debt restructuring will be completed by the end of the forbearance period or at all.