Globalstar to file for bankruptcy

Satellite telephone company Globalstar Telecommunications plans to file for bankruptcy by the end of the year as part of its restructuring, the company said.

Globalstar, which stopped making debt payments to its creditors earlier this year, is facing $3.3 billion in debt. According to terms of a deal now in discussions, Globalstar would file for bankruptcy, then creditors and Loral Space & Communications and Qualcomm, the two companies that originally formed Globalstar in 1991, would own the new entity. Qualcomm would then take over the operations.