Covington satellite phone company Globalstar said Monday it has another week and a half to work out a deal with noteholders who wanted to surrender their securities and claim nearly $70.7 million.
Under the terms of the original offer, the noteholders had a right to put in claims for the money on April 1. Globalstar announced several weeks ago it didn’t have the funds to purchase the notes. The deadline has been extended twice and now is set for May 6.
In a statement, Globalstar said it is continuing to negotiate a restructuring arrangement with the noteholders.
“We have made significant progress over the past week and look forward to being able to complete the process in the near-term,” said Jay Monroe, Globalstar’s CEO.
The agreement may be extended further, however Globalstar warned there is no assurance a further delay will be agreed to by the noteholders.
Globalstar has faced financial difficulties while it launched a second generation of satellites for its phone network. The satellite launch was delayed and problems with the service kept Globalstar from bringing in new customers. The last batch of satellites was launched earlier this year and the full network should be on line by August.
Globalstar’s stock dropped 1 cent, or nearly 3 percent, Monday to 34 cents.