Globalstar, the Covington-based satellite phone company, has reached an agreement with creditors and lined up $85 million in financing to bolster its long-term liquidity.

The agreement, announced Monday evening, clears up an issue Globalstar had with noteholders, who had the right to surrender their securities and claim nearly $70.7 million last month. The company didn’t have the cash on hand to repay the noteholders.

Under the new agreement Globalstar exchanged the 5.75 percent notes for 8 percent notes due in 2028. The deal will reduce debt amoritization requirements through 2019 and provide the capital needed to facilitate a long-term business plan.

“We have cleared the way for Globalstar to focus purely upon operational execution,” Jay Monroe, Globalstar’s chairman and CEO, said in a statement.

The new deal allows the company to pursue opportunities stemming from the upcoming completion of its second-generation satellite network, which will provide customers with clear service.

Shares of Globalstar were unchanged Monday at 40 cents.