Satellite phone company
was down 24.6% in preopen
trading after announcing it would suspend payments on its debts, including vendor financing agreements, to conserve cash for operations.
The company also said it would suspend dividend payments on its preferred shares and announced that it hired the
to advise it on restructuring and strategic options.
fell 5.1% in the preopen on the announcement. Qualcomm said it has about $610 million worth of Globalstar-related assets and was evaluating the effect of the announcement. Qualcomm said it remains comfortable with the Street's first-quarter estimate of 28 cents.
Loral Space and Communications
owns 40% of Globalstar.