COVINGTON, La., April 29, 2013 (GLOBE NEWSWIRE) -- Globalstar, Inc. (OTCBB:GSAT) announced today that the forbearance agreement with respect to the Company's 5.75% Convertible Senior Notes due 2028 (the "Existing Notes") has been amended to extend the forbearance period through 11:59 pm (ET) on May 6, 2013 as negotiations with the forbearing noteholders continue. In addition, the extension will allow additional time as the Company seeks to obtain the required consents from the Company's senior secured lenders with respect to an exchange transaction. To the extent this process is not complete by May 6, 2013, the forbearance agreement may be extended further by agreement of the parties; however, there is no assurance any further extension will be provided.
Jay Monroe, Globalstar's Chairman and CEO, said, "We continue to work with the noteholders to finalize the terms of an exchange transaction and with the Company's secured lenders to seek their approvals regarding the proposed exchange. We have made significant progress over the past week and look forward to being able to complete the process in the near-term."
As described in the Company's Current Reports on Form 8-K filed on April 1, 2013 and April 23, 2013, pursuant to the forbearance agreement, the forbearing note holders have agreed, during the forbearance period, not to exercise any rights or remedies under the Existing Notes on account of the failure by the Company either to repurchase the Existing Notes upon the April 1, 2013 put date or to make its regularly scheduled April 1, 2013 interest payment (together, the "Specified Defaults"), including without limitation, taking any action to accelerate the Existing Notes. The forbearing note holders have also directed the trustee not to take any action on account of the Specified Defaults.Any exchange 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.