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Satellite mobile phone operator halts debt repayments
January 17, 2001 12:00 PM ET
Reprinted with permission from
IDG.net
Story copyright 2009 International Data Group. All rights reserved.
IDG News Service -
BERLIN -- Troubled satellite phone operator Globalstar Telecommunications Ltd. announced Tuesday it is indefinitely suspending payment on its debt, as it attempts to develop a new plan to salvage the business.
"The action Globalstar has taken assures that funds will continue to be available to fund our ongoing operations," said Chairman and CEO Bernard Schwartz on a conference call broadcast via the Internet. "Our customers will see no change in their service, or in the customer support activities." He added that the company is pushing forward with plans to expand coverage and to market more aggressively to new subscribers.
Globalstar, like other players in the satellite phone field, has been plagued by poor usage rates -- the company counted only 31,200 subscribers last week, Schwartz said.
"There's no question that the performance to this date in terms of the pickup rate is not what we wanted it to be. But we're buying time here to add the kinds of resources that we think are necessary to turn the situation around," he added.
Globalstar is based in San Jose, Calif.
Reprinted with permission from
IDG.netStory copyright 2009 International Data Group. All rights reserved.
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