CJSC GlobalTel informs its dealers and subscribers that on December 9, 2003
Thermo Capital Partners
announceed that the procedure of purchasing
Globalstar was completed and that Thermo Capital
Partners begins financing Globalstar's further activity.
Globalstar, L.P. and Thermo Capital Partners LLC announced they have finalized their
previously-announced acquisition plan. As a result, a new Globalstar company, controlled by Thermo,
has been established, and Thermo will be providing funding for the new company's operations.
Under the acquisition agreement, Globalstar's business assets will be transferred to the new company,
which will operate under the Globalstar brand name. The transfer of certain assets has already
occurred, and the entire process will be completed upon receipt of U.S. regulatory approval,
which is expected to take place in the first quarter of 2004. In the meantime, Globalstar's
regulated assets will remain with Globalstar, L.P. and will be operated by the new company
pursuant to a management agreement.
As a result of the transaction with Thermo, Globalstar service and customer support around the
world will continue uninterrupted, and the new company is planning to introduce an accelerated
business expansion plan later in 2004.
"This is the beginning of a new, very encouraging chapter for Globalstar," said company president
Tony Navarra. "Our working relationship with Thermo has already spanned many months, and as a
result, we have been able to rapidly develop with them an outline for an aggressive business
plan that will give Globalstar the opportunity to broaden our business and to introduce new
products and services in the future."
Today's announcement follows last month's approval by the U.S. Bankruptcy Court in Delaware
of the acquisition of the Globalstar business by Thermo. The agreements completed late
last week will give Thermo an 81.25% ownership of the new company that will eventually
take control of substantially all of Globalstar's assets and operations, in exchange
for a cash investment of up to $43 million. The remaining 18.75% of the equity
interests in the new company will be retained by Globalstar for future distribution to its
creditors under its bankruptcy plan. Additionally, Globalstar's creditors will have the
right to purchase additional equity interests in the new company for an aggregate ownership
interest of up to 36.37%.
"Even in the midst of this challenging restructuring process, Globalstar has been able to achieve
truly astounding growth, opening up many new markets and more than tripling our subscriber base
since our restructuring work first began," Mr. Navarra added. "With this process now almost complete,
we should be able to accelerate our business growth even further, reinforcing the company's
leadership in the mobile satellite phone industry."
Meanwhile CJSC GlobalTel, being an independent Russian legal entity, continues operating in normal
regime and expanding its range of services, having superb quality of communications and affordable
prices on the equipment and services, guarantees that it has got all necessary legal, financial and
organizational resources for continuous uninterrupted service of its present and future subscribers
and for further strengthening of its positions in the Russia's telecommunications market.
About Globalstar
Globalstar is the world's most widely-used global mobile satellite telecommunications service,
offering both voice and data services from virtually anywhere in over 100 countries around the
world. For more information, visit Globalstar's web site
(www.globalstar.com).
About Thermo
Thermo Capital Partners is part of the Thermo Companies, based in New Orleans, LA, and Denver, CO,
a highly successful group of privately-held companies focused on opportunities in the
telecommunications, power generation, natural resources and real estate industry.
For more information, visit the Thermo website (www.thermocompanies.com).
