Court Approves ICO's Globalstar Acquisition

A U.S. Bankruptcy Court approved the sale of Globalstar's assets to ICO Global Communications for an investment of $55 million. ICO will receive a 54% equity stake in the new operating company. The remaining equity will be distributed to Globalstar's creditors, which include Loral Space & Communications, Qualcomm Incorporated and holders of Globalstar L.P. bonds. It is estimated that $4 billion has been spent thus far on Globalstar and its mobile satellite communications network. ICO Chairman Craig O. McCaw said he believes that Globalstar can deliver useful services for governments, corporations and communities around the world. Most recently due to demand, Globalstar has expanded its service coverage in the Middle East. ICO is also currently deploying its own medium earth orbit MSS constellation (at 10,000 kilometers vs. Globalstar's 1,400 kilometer orbit) to provide global voice and data communications. ICO has contracted with Boeing and Lockheed/ILS to construct and launch its satellites.
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