World Surveillance Group Inc (fka WSGI)

[JackedOnCaffeine]

Another setback for Globalstar, and likely to affect future GTC business opportunities unless Globalstar and Thales can reach a new agreement to continue the build-out. The return of profitability of the GTC business model and attraction of new business is highly dependent on the continued build-out of this generation of new Globalstar satellites. Hope they can work this out and continue the progress.

http://finance.yahoo.com/news/globalstar-announces-regarding-commercial-arbitration-210000173.html

Globalstar Announces Update Regarding Commercial Arbitration With Thales Alenia Space

COVINGTON, La., May 16, 2012 (GLOBE NEWSWIRE) -- Globalstar, Inc., ("Globalstar" or the "Company") today announced the decision of the arbitrators in the commercial arbitration concerning its 2009 satellite manufacturing contract with Thales Alenia Space France ("Thales"). The arbitrators ruled that Thales has no further obligation to manufacture or deliver satellites under Phase 3 of the contract. Phase 3 provided for Globalstar's option to purchase up to 23 second-generation satellites in addition to the 25 satellites purchased in the first two phases under the contract. Although the Company and Thales may agree to other terms, the arbitrator's ruling also requires Globalstar to pay Thales approximately EUR 53 million in termination charges by June 9, 2012. Globalstar and Thales have already initiated post-ruling discussions to seek mutually agreeable solutions without which there are likely to be materially negative consequences to Globalstar, including with respect to its debt agreements, ongoing work with Thales and business operations.

"Although we had hoped for a different outcome, we have been in constant contact with Thales over the last several months as completion of Phase 2 satellites continues, and over the past days to negotiate acceptable terms for ordering additional satellites. Having already paid over EUR 450 million to Thales and having experienced satellite delivery delays approaching two years, we remain hopeful that a mutually acceptable agreement can be reached," said Jay Monroe, Chairman and CEO of Globalstar. Mr. Monroe added, "Globalstar has been operating under extremely challenging circumstances for the past few years as a result of delayed satellite deliveries and remains amenable to negotiating a positive resolution with Thales."