New Valley scraps plan to rescue Globalstar
Jan 30, 2003 12:00 PM
New Valley Corp., an investment group, said Thursday it terminated
an agreement to infuse $55 million into Globalstar LP and help the
satellite telephone company emerge from bankruptcy.
New Valley said it was ending its plan to provide debtor-in-possession
financing and acquire a controlling interest in Globalstar due to its
inability to reach a final agreement with the company's creditor
committee, Reuters reported.
The proposal, reached more than two weeks ago, included $20 million in
debtor-in-possession financing and an additional $35 million in
financing if the Delaware bankruptcy court approved the transaction.
Still to be negotiated was exactly how much of a stake New Valley and
Globalstar's creditors would own once the company emerged from
bankruptcy.
Miami-based New Valley said it will continue to seek opportunities to
acquire additional companies.
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