Globalstar is in talks with potential investors over raising additional capital for the company.
In an SEC filing, the mobile satellite services operator stated that it is unable to file its 10-K annual report for 2010 within the prescribed time period…
Globalstar is in talks with potential investors over raising additional capital for the company.
In an SEC filing, the mobile satellite services operator stated that it is unable to file its 10-K annual report for 2010 within the prescribed time period due to two principle reasons. Firstly, that it is in the process of securing a new licence from the FCC for its United States ground stations, and with it a subsequent amendment to the facility agreement with its lenders, and secondly that it is holding ongoing negotiations with undisclosed investors over an equity fundraising.
The company stated: “If any of these negotiations are not completed by Globalstar in a favourable manner prior to the time it files its Form 10-K, management anticipates that Globalstar’s financial statements will reflect the uncertainties relating to these issues and its ability to fulfil all of its contractual obligations and to meet its working capital needs may be adversely affected.
“Globalstar’s management team is working actively to resolve these issues outlined above and expects to file the Form 10-K within the permitted extension period.”
Under the terms of Globalstar’s Coface-backed US$586.3m senior secured credit facility, the company is required to have an FCC licence for its US ground stations. Globalstar is currently in talks with those senior lenders regarding an amendment to this requirement while it discusses with both the FCC and the French communication licensing authority the receipt of such licences. At the same time, Globalstar is in talks a ground segment vendor regarding changes to its future contractual obligations.
