Globalstar Bailout
March 26, 2009 at 1:59 pm | Posted in Space Law | Leave a commentby P.J. Blount with the blog faculty
From the Wall Street Journal:
Globalstar Secures Financing From France’s Export Credit Agency
By ANDY PASZTORMobile satellite-services provider Globalstar Inc. has received a $574 million lifeline from France’s export credit agency that it can use to acquire and launch satellites to replenish its faltering fleet.
Though Globalstar is based in Milpitas, Calif., the unusual trans-Atlantic financing arrangement is intended to protect jobs in France. The money, guaranteed by COFACE, France’s export credit agency, will allow Globalstar to continue as a going concern and purchase new-generation satellites from the French-led venture Thales Alenia Space.
The funds will be provided by a syndicate that includes major French banks and are intended to pay for at least 24 of the four dozen satellites Globalstar previously ordered from the Thales venture, according to industry officials. Globalstar placed the order in 2006, but the firm’s shaky finances had raised questions about whether it would ever be able to pay for them. . . .[Full Story]
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