<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 16, 2001
-----------------
GLOBALSTAR TELECOMMUNICATIONS LIMITED
------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Islands of Bermuda 0-25456 13-3795510
------------------------------------------------------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number
Cedar House, 41 Cedar Avenue, Hamilton, Bermuda HM 12
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(441) 295-2244
------------------------------------------------------------
GLOBALSTAR, L.P.
----------------
(Exact name of registrant as specified in its charter)
Delaware 333-25461 13-3759824
------------------------------------------------------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number
3200 Zanker Road, San Jose, California 95134
------------------------------------------------------------
(Address of principal executive offices)(Zip Code)
<PAGE>
Registrant's telephone number, including area code:
(408)933-4000
-------------
-2-
<PAGE>
Item 5. Other Events.
------------
Globalstar, L.P. ("Globalstar") announced today that, in order to have
sufficient funds available for continued progress of its marketing and service
activities, it has suspended indefinitely principal and interest payments on all
of its funded debt, including its credit facility, vendor financing agreements
and senior notes, as well as dividend payments on its preferred partnership
interests issued to Globalstar Telecommunications Limited ("GTL"). As a result,
GTL has also suspended dividend payments on its preferred stock.
Globalstar is continuing to meet its obligations to its employees,
customers and trade suppliers in the normal course, and believes it has
sufficient cash on hand ($195 million as of December 31, 2000) to meet these
obligations on an ongoing basis. The suspension of principal and interest
payments on its funded debt will conserve approximately $400 million of the
company's cash for the year 2001.
Globalstar believes that the suspension of these payments will enable the
company to have sufficient cash to fund its operations into the year 2002,
giving its partners additional time to implement their new marketing
initiatives, including new vertical market sales programs and expanded marketing
of data services.
Globalstar did not make the $45 million interest and principal payments due
yesterday on its $500 million credit facility owed to Loral Satellite, Inc. and
under its vendor financing agreements with Qualcomm Incorporated and Space
Systems/Loral, Inc.
Globalstar has retained The Blackstone Group as its financial adviser to
assist in developing initiatives as the company moves forward, including
restructuring Globalstar's debt, identifying funding opportunities and pursuing
other strategic alternatives.
This report contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 and within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements provide the registrants' expectations or
forecasts of future events. Actual results could differ materially as a result
of known or unknown risks and uncertainties and other factors, including
Globalstar's ability to secure sufficient funding under credit facilities or
from other sources, to restructure its debt, the accceleration of existing debt
facilities and the exercise of remedies with respect thereto, and other risks,
uncertainties and factors disclosed in the most recent report on Form 10-K and
reports on Form 10-Q and Form 8-K of the registrants filed with the Securities
and Exchange Commission. The registrants undertake no obligation to update any
forward-looking statement.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
------------------------------------------------------------------
None.
-3-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GLOBALSTAR TELECOMMUNICATIONS
LIMITED
By: /s/ Avi Katz
----------------------
Name: Avi Katz
Title: Vice President and Secretary
GLOBALSTAR, L.P.
By: Loral/Qualcomm Satellite
Services, L.P., its managing general partner
By: Loral/Qualcomm Partnership, L.P.,
its general partner
By: Loral General Partner, Inc.,
its general partner
By: /s/ Avi Katz
----------------------
Name: Avi Katz
Title: Vice President and Secretary
Date: January 16, 2001
-4-
