|Loral Says Globalstar Filing Will Not Adversely Affect It |
NEW YORK, Feb 15, 2002 (BUSINESS WIRE) -- Loral Space & Communications (NYSE: LOR chart, msgs) provided comments concerning today's announcement by Globalstar, L.P. that Globalstar has reached agreement with several creditors to restructure its debt, has filed a voluntary bankruptcy petition, and has initiated a new business model to broaden its business opportunities and accelerate the acquisition of new customers.
The Globalstar actions are expected to have no adverse impact on Loral. Loral said it wrote off substantially all of its investment in Globalstar-related activities a year ago -- as of December 31, 2000 -- and therefore anticipates no adverse adjustments to Loral's results of operations or financial position.
"It took Globalstar longer than originally expected to commercially roll out its service," said Bernard L. Schwartz, chairman and chief executive officer of Loral. "Moreover, changes in competing technologies and overall economic conditions made it impossible for Globalstar to raise the additional funds necessary to complete the deployment of its service without a financial reorganization. We do not expect this to have any adverse economic consequences for Loral. As a creditor, Loral would become a partial owner of a `new Globalstar' to be created under its reorganization plan."
Loral Space & Communications is a high technology company that concentrates primarily on satellite manufacturing and satellite-based services. For more information, visit Loral's web site at www.loral.com.
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, Loral Space & Communications Ltd. or its representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in, but are not limited to, various filings made by the company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions. These factors and conditions have been described in the section of the company's annual report on Form 10-K for the fiscal year ended December 31, 2000, entitled "Certain Factors That May Affect Future Results," and the company's other filings with the Securities and Exchange Commission. With regard to forward-looking statements concerning Loral CyberStar, Inc. and its business, financial condition, results of operations and prospects, the factors and conditions which could materially affect these statements are described in the section of Loral CyberStar's annual report on Form 10-K for the fiscal year ended December 31, 2000, entitled "Certain Factors That May Affect Future Results." The reader is specifically referred to these documents regarding the factors and conditions that may affect future results.
Loral Space & Communications
Jeanette Clonan or Tony Doumlele