Globalstar Posts Loss, Defaults on Debt

Globalstar, a provider of mobile telephone service via satellite, posted a wider first-quarter loss and said it continues to review various restructuring proposals, even as it defaulted on debt and took three satellites out of service due to operational problems.

The company also said Bernard Schwartz resigned as chairman and chief executive as part of the company’s overall restructuring. Olof Lundberg, who previously led rival ICO Global Communications Ltd., was named to succeed Schwartz.

Meanwhile, Globalstar also said that Swedish mobile phone giant Ericsson is seeking $31 million in damages from the company for failing to satisfy minimum purchasing requirements under a contract.

Globalstar’s net loss widened to $145 million, or $2.25 a share, from $216 million, or $3.53, in the year-ago first quarter. The New York-based firm is a partnership formed in 1994 by Loral Space & Communications Ltd. and Qualcomm Inc.