Statement from Van Greenfield, Chairman of Globalstar LP Creditors Committee, Regarding Court Approval of Assets Sale and a Pote
November 24 2003 - 7:06PM
PR Newswire (US)
Statement from Van Greenfield, Chairman of Globalstar LP Creditors
Committee, Regarding Court Approval of Assets Sale and a Potential
Higher Bid by Cogent Communications Group, Inc. NEW YORK, Nov. 24
/PRNewswire/ -- Background Globalstar, LP, a satellite telephone
company, received approval on November 20 in a court hearing before
Judge Peter Walsh at the U.S. Bankruptcy Court in Wilmington,
Delaware for a sale of its assets to Thermo Capital Partners LLC.
The Court also granted a $1.9 million break-up fee and other bidder
protections for Thermo. During the Court hearing, Cogent
Communications Group, Inc. (American Stock Exchange Symbol COI)
also indicated its desire to engage in a transaction. Cogent
believes that its offer, based on the last 20 days average closing
prices of Cogent stock, would include more than $100 million in
fully registered, freely tradable Cogent stock to be distributed to
Globalstar creditors. The Creditors Committee is in the midst of
its due diligence on the proposed Cogent transaction and has no
opinion on this valuation. Under the terms of the Thermo deal,
Thermo will pay $43 million in cash and assume $10 million in debt
in exchange for Globalstar's assets and an 81.25 percent stake in
the new company. Globalstar will retain the remaining 18.75 percent
to pay unsecured creditors. In addition, Globalstar's creditors
will have the right to purchase additional equity interests in the
reorganized company. It is expected that the parties to the Thermo
transaction shall execute definitive documents by December 2, 2003.
The possibility exists that some other party may make an offer to
purchase substantially all of the assets of Globalstar. In such
event, Globalstar and its Official Creditors Committee will review
any such offer to determine whether it represents more value than
the Thermo transaction. Statement by Van Greenfield, Chairman of
the Official Committee of Unsecured Creditors for Globalstar, LP:
"I am pleased with the outcome of the November 20 hearing before
Judge Walsh in the U.S. Bankruptcy Court in Wilmington, Delaware.
"The hearing established Thermo as the current highest and best
offer for the primary assets of Globalstar. Cogent Communications
also outlined a competing offer during courtroom proceedings.
Consistent with its fiduciary duties, the Creditors Committee is
actively evaluating this proposal and is conducting due diligence
to make a final recommendation to the Court." This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These statements
provide our expectations or forecasts of future events. Actual
results could differ materially as a result of known or unknown
risks and uncertainties and other factors, including Globalstar's
ability to secure sufficient funding under credit facilities or
from other sources, to restructure its debt, the acceleration of
existing debt facilities and the exercise of remedies with respect
thereto, and other risks, uncertainties and factors disclosed in
the most recent report on Form 10-K and reports on Form 10-Q and
Forms 8-K of Globalstar Telecommunications Ltd. and Globalstar,
L.P. filed with the Securities and Exchange Commission. We
undertake no obligation to update any forward-looking statement.
DATASOURCE: Globalstar, LP CONTACT: Amy Greenfield, Esq. of Van
Prooyen Greenfield LLP, +1-212-717-9130, for Globalstar, LP
Copyright