filed for Chapter 11 bankruptcy Friday after reaching an agreement with several major creditors on a plan to restructure the company's debt.
In doing so, Globalstar becomes the latest company in the telecom sector to seek protection from creditors. Normal operations and customer support will continue, and the company expects to continue providing its telecommunications services.
In November Globalstar, which operates a satellite-based telecommunications network, said a bankruptcy filing was a possibility, because even as demand has continued to grow, the cost of servicing the company's debt has outpaced revenue.
In related news,
Loral Space & Communications
, an early Globalstar backer, said it wrote off substantially all of its investment in Globalstar a year ago and therefore expects no adverse effects on its results of operations or financial position.