McCaw Firm to Take Control of Globalstar
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Wireless pioneer Craig McCaw is taking control of satellite phone provider Globalstar in a $55-million deal.
The deal, approved in Bankruptcy Court on Friday and announced Monday, gives McCaw’s ICO Global Communications Ltd. a 54% stake in Globalstar, which burned through $4 billion before filing for Chapter 11 protection last year. The remaining 46% will be held by creditors, including Loral Space & Communications Ltd. and Qualcomm Inc.
London-based ICO has been developing a phone and data satellite service and has one satellite aloft. Globalstar, based in San Jose, has 52 satellites and 88,000 customers.
A rival satellite phone company, Iridium Satellite, also remains afloat after bankruptcy reorganization, helped by a big Pentagon contract.
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