Article: Globalstar Acts to Assure Continued Funds for Operations; Suspends Payments On Funded Debt; Retains the Blackstone Group to Advise On Future Financial Initiatives.

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 16, 2001

Globalstar (GSTRF:NASDAQ) announced today that, in order to have sufficient funds available for the continued progress of its marketing and service activities, it has suspended indefinitely principal and interest payments on all of its funded debt, including its credit facility, vendor financing agreements and Senior Notes, as well as dividend payments on its preferred stock.

This decision, which has been endorsed by Globalstar's partners, is designed to ensure the uninterrupted continuation of Globalstar's satellite-based communications service and further deployment of these services ...

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