COVINGTON, La., May 6, 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 13, 2013 as negotiations with the forbearing note holders 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 13, 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, "This latest extension was necessary as we continue the process of seeking necessary approvals from the Company's secured lenders. We believe that we are in the final stages of negotiating the transaction and look forward to completing an exchange transaction that satisfies all participants."
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.