Summary
Globalstar, Inc. (GSAT) filed an 8-K on April 29, 2013, primarily announcing a third amendment to a forbearance agreement concerning its 5.75% Convertible Senior Notes due 2028. This amendment, agreed upon with certain beneficial owners and investment managers of these notes (referred to as Forbearing Note Holders), extends the forbearance period through May 6, 2013. This marks a continuation of discussions and an effort to avoid potential default or facilitate an exchange transaction related to these notes. The filing indicates that Globalstar is actively working with its noteholders to find a resolution, as evidenced by multiple forbearance extensions. Investors should note that while the company is seeking to restructure or amend its debt obligations, there is no guarantee that an exchange transaction will be successfully consummated by the new deadline or at all. This situation highlights ongoing financial restructuring efforts and potential risks associated with the company's debt.
Key Highlights
- 1Globalstar, Inc. entered into a third amendment to a forbearance agreement for its 5.75% Convertible Senior Notes due 2028.
- 2The forbearance period has been extended through May 6, 2013 (11:59 PM ET).
- 3This extension is with certain beneficial owners and investment managers of the notes (Forbearing Note Holders).
- 4All other terms of the previously amended forbearance agreement remain unchanged.
- 5The company acknowledges that there is no assurance an exchange transaction will be consummated by the new date or at all.
- 6The filing also includes a press release dated April 29, 2013, announcing this amendment.
- 7The report is signed by James Monroe III, Chief Executive Officer.