<PAGE>

                                                                    EXHIBIT 99.2

                          INDEPENDENT AUDITORS' REPORT

To the Partners of Loral/QUALCOMM Satellite Services, L.P.:

     We have audited the accompanying balance sheets of Loral/QUALCOMM Satellite
Services, L.P. ("LQSS") (a General Partner of Globalstar, L.P.) (a
Debtor-in-Possession) as of December 31, 2001 and 2000. These balance sheets are
the responsibility of LQSS's management. Our responsibility is to express an
opinion on these balance sheets based on our audits.

     We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the balance
sheets are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the balance sheets. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall balance sheet
presentation. We believe that our audits of the balance sheets provide a
reasonable basis for our opinion.

     In our opinion, such balance sheets present fairly, in all material
respects, the financial position of Loral/QUALCOMM Satellite Services, L.P. as
of December 31, 2001 and 2000 in conformity with accounting principles generally
accepted in the United States of America.

     The accompanying balance sheets have been prepared assuming that LQSS will
continue as a going concern. As discussed in Note 2 to the financial statements,
LQSS is dependent upon Globalstar, L.P.'s ("Globalstar") successful financial
results and achievement of profitable operations for the recovery of its
investment. On February 15, 2002, Globalstar and LQSS sought protection from
their creditors by filing a voluntary petition under provisions of Chapter 11 of
the U.S. Bankruptcy Code. These factors raise substantial doubt about LQSS's
ability to continue as a going concern. Management's plans for restructuring are
also described in Note 2. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

DELOITTE & TOUCHE LLP

San Jose, California
April 5, 2002

                                       E-9
<PAGE>

        LORAL/QUALCOMM SATELLITE SERVICES, L.P., A DEBTOR-IN-POSSESSION
                    (A GENERAL PARTNER OF GLOBALSTAR, L.P.)

                                 BALANCE SHEETS

<Table>
<Caption>
                                                                   DECEMBER 31,
                                                              ----------------------
                                                                2001         2000
                                                              ---------    ---------
                                                                  (IN THOUSANDS)
<S>                                                           <C>          <C>
ASSETS:
Investment in Globalstar, L.P. .............................  $      --    $      --
                                                              ---------    ---------
Total assets................................................  $      --    $      --
                                                              =========    =========
LIABILITIES AND PARTNERS' DEFICIT:
Current liabilities:
  Equity losses in excess of partnership interests in
     Globalstar.............................................  $ 544,576    $ 461,227
                                                              ---------    ---------
Partners' capital:
  Partnership interests (18,000 interests outstanding)......  $      --    $      --
  Accumulated deficit.......................................   (544,576)    (461,227)
Total partners' deficit.....................................   (544,576)    (461,227)
                                                              ---------    ---------
Total liabilities and partners' deficit.....................  $      --    $      --
                                                              =========    =========
</Table>

                          See notes to balance sheets.
                                       E-10
<PAGE>

        LORAL/QUALCOMM SATELLITE SERVICES, L.P., A DEBTOR-IN-POSSESSION
                    (A GENERAL PARTNER OF GLOBALSTAR, L.P.)

                            NOTES TO BALANCE SHEETS

1. ORGANIZATION AND BACKGROUND

     Loral/QUALCOMM Satellite Services, L.P. ("LQSS"), was formed in November
1993 as a Delaware limited partnership with a December 31 fiscal year end. The
general partner of LQSS is Loral/ QUALCOMM Partnership, L.P. ("LQP"), a limited
partnership whose general partner is Loral General Partner, Inc. ("LGP"), a
subsidiary of Loral Space & Communications Ltd., a Bermuda company ("Loral") and
whose limited partners include a subsidiary of QUALCOMM Incorporated
("QUALCOMM").

     LQSS's only activity is acting as the managing general partner of
Globalstar. Globalstar was founded to design, construct and operate a worldwide,
low-earth orbit ("LEO") satellite-based wireless digital telecommunications
system. The Globalstar System's worldwide coverage is designed to enable its
service provides to extend modern telecommunications services to millions of
people who currently lack basic telephone service and to enhance wireless
communications in areas underserved or not served by exiting or future cellular
systems, providing a telecommunications solution in parts of the world where the
build-out of terrestrial systems cannot be economically justified. At December
31, 2001, LQSS held a 27.6% interest in Globalstar's outstanding ordinary
partnership interests. As LQSS's investment in Globalstar is LQSS's only asset,
LQSS is dependent upon Globalstar's success and achievement of profitable
operations for the recovery of its investment.

     Globalstar operates in one industry segment, satellite telecommunications,
providing global mobile and fixed wireless voice and data services.

2. BASIS OF PRESENTATION

     LQSS is a holding company that acts as a general partner of Globalstar and
has no other business or investments. LQSS's sole asset is its investment in
Globalstar and LQSS's results of operations reflect its share of the results of
operations of Globalstar on an equity accounting basis. Accordingly, LQSS's
results of operations only reflect its proportionate share of Globalstar's
results of operations, as presented on Globalstar's financial statements, and
the appropriate amortization and interest associated with this investment.

     On January 16, 2001, Globalstar suspended indefinitely principal and
interest payments on its funded debt and dividend payments on its 8% and 9%
convertible redeemable preferred partnership interests in order to conserve cash
for operations. Non-payment of interest on Globalstar's debt instruments, credit
facility and vendor financing agreements when they become due, and continuance
of non-payment for the applicable grace period, are "events of default" under
the terms of each of the debt instruments. An event of default has occurred in
connection with Globalstar's $500 million credit facility, its vendor financing
facility with QUALCOMM, its 11 3/8% senior notes due February 15, 2004, its
11 1/4% senior notes due June 15, 2004, its 10 3/4% senior notes due November 1,
2004, and its 11 1/2% senior notes due June 1, 2005 ("senior notes due 2004 and
2005"). Accordingly, for reporting and accounting purposes, Globalstar
classified the $500 million credit facility, the QUALCOMM vendor financing and
the senior notes as current obligations.

     On February 15, 2002, LQSS, LQP, Globalstar, and certain of Globalstar's
subsidiaries filed voluntary petitions under Chapter 11 of Title 11, United
States Code, in the United States Bankruptcy Court for the District of Delaware
(Case Nos. 02-10506, 02-10507, 02-10499, 02-10501, 02-10503 and 02-10504).
Globalstar and its subsidiaries remain in possession of their assets and
properties and continue to operate their businesses as debtors-in-possession. As
a result of Globalstar's bankruptcy petition, several of Globalstar's debt
obligations have been accelerated and are immediately due and payable.

                                       E-11
<PAGE>
        LORAL/QUALCOMM SATELLITE SERVICES, L.P., A DEBTOR-IN-POSSESSION
                    (A GENERAL PARTNER OF GLOBALSTAR, L.P.)

                     NOTES TO BALANCE SHEETS -- (CONTINUED)

     Negotiations prior to filing of Globalstar's bankruptcy petition resulted
in an agreement reached among Loral, Globalstar's informal committee of
bondholders, representing approximately 17% of Globalstar's outstanding senior
notes, and Globalstar, regarding the substantive terms of a proposed financial
and legal restructuring of Globalstar's business. Under the proposed
restructuring plan, all of Globalstar's assets would be contributed into a new
Globalstar company, which would be initially owned by Globalstar's existing
noteholders and other unsecured creditors. The proposed plan also calls for the
cancellation of all existing partnership interests in Globalstar, but
contemplates, subject to the satisfaction of certain conditions, a rights
offering to GTL's common and preferred shareholders and Globalstar's creditors
which could give them the option to purchase shares in the new company. The
proposed restructuring plan will be required to be submitted for and be subject
to bankruptcy court approval. The terms of the proposed plan were described in
Globalstar's Form 8-K filing dated February 19, 2002.

     Globalstar has developed a new business plan for the purpose of
restructuring the partnership's finances; the plan will be submitted to and
subject to bankruptcy court approval. The business plan assumes the conversion
of all outstanding Globalstar debt obligations into equity in a new Globalstar
company ("Newco") and the consolidation of certain Globalstar service provider
operations into Newco. The service provider consolidation is intended to bring
additional efficiencies to the operation of the Globalstar network and allow for
increased coordination in the Globalstar service offerings and pricing.
Globalstar believes that these steps are needed to achieve and maintain
financial viability. In addition to the service provider operations to be
consolidated into Newco, Globalstar intends to continue to offer its services
through existing independent gateway operators in other regions.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  Investment in Globalstar, L.P.

     LQSS accounts for its investment in Globalstar's ordinary partnership
interests on an equity basis, recognizing its allocated share of net loss for
each period since its initial investment in March 1994. During 1995, LQSS's
investment in Globalstar was reduced to zero. Accordingly, LQSS has discontinued
providing for its allocated share of Globalstar's net losses and recognized the
remaining unallocated losses as a result of its general partner status in
Globalstar in proportion to its interests in the general partner interests
outstanding. Because LQSS is a general partner of Globalstar, LQSS is jointly
and severally liable with the other general partner for the recourse debt and
other recourse obligations of Globalstar to the extent Globalstar is unable to
pay such debts. LQSS believes that such recourse obligations totaled
approximately $1.4 billion as of December 31, 2001. As a result of its general
partner status, LQSS has recorded a cumulative liability of $544.6 million.
Certain of Globalstar's debt, including the public debt, are non-recourse to the
general partners. Future funding, if any, or assets of GTL, may be utilized to
fund this general partner liability.

     During the year ended December 31, 2001, an issue was raised as to whether
the three-year notes issued to the guarantors of The Chase Manhattan Bank $250
million credit facility were prepared in accordance with the recourse provisions
of the guarantee arrangement. Management does not believe the existing notes
containing non-recourse language will need to be replaced with notes not
containing the non-recourse language. If the existing non-recourse notes were
replaced with notes not containing the non-recourse language, the replacement
would not impact Globalstar's results of operations. However, allocations of
Globalstar's losses to general partners, including GTL, would increase by the
amount of the increase in recourse obligations. Replacement of the notes would
not alter the subordinate position of GTL's shareholders relative to holders of
these notes.

                                       E-12
<PAGE>
        LORAL/QUALCOMM SATELLITE SERVICES, L.P., A DEBTOR-IN-POSSESSION
                    (A GENERAL PARTNER OF GLOBALSTAR, L.P.)

                     NOTES TO BALANCE SHEETS -- (CONTINUED)

  Use of Estimates in Preparation of Financial Statements

     The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the amounts of expenses reported for the period. Actual results
could differ from estimates.

  Income Taxes

     LQSS was organized as a Delaware limited partnership. As such, no income
tax provision (benefit) is included in the accompanying financial statements
since U.S. income taxes are the responsibility of its partners. Generally,
taxable income (loss), deductions and credits of LQSS will be passed
proportionately through to its partners.

4. INVESTMENT IN GLOBALSTAR

     On March 23, 1994, LQSS entered into a subscription agreement to acquire
18,000,000 general ordinary partnership interests in Globalstar for $50,000,000.
LQSS paid $38,691,000 in cash during 1994 and 1995 and received a credit of
$11,309,000 against its capital subscription, as compensation for certain costs
incurred by the partners of its general partner, LQP. As of December 31, 2001,
Globalstar had 45,289,938 general and 19,937,500 limited ordinary partnership
interests outstanding.

     On February 14, 1995, GTL completed an initial public offering of
40,000,000 shares of common stock, resulting in net proceeds of $185,750,000,
which were used to purchase 10,000,000 ordinary general partnership interests in
Globalstar. LQSS and the other partners in Globalstar have the right to exchange
their ordinary partnership interests into shares of GTL common stock on an
approximate one-for-four basis following the Full Coverage Date, as defined, of
the Globalstar System and after two consecutive quarters of positive net income,
subject to certain annual limitations. GTL has reserved approximately 153.7
million shares for this purpose.

5. PARTNERS' CAPITAL

     On March 23, 1994, LQSS received capital subscriptions of $50,000,000 for a
42.2% general partnership interest and 57.8% limited partnership interests,
representing all issued and outstanding partnership interests. Of these capital
subscriptions, $38,691,000 was received in cash during 1994 and 1995 and a
capital subscription credit of $11,309,000 was issued to the general and limited
partners as compensation for expenditures incurred by Loral and QUALCOMM from
January 1, 1993 through March 22, 1994, relating to the Globalstar System. LQSS
was in turn granted a credit against its capital subscription payable to
Globalstar for the same amount.

6. RELATED PARTY TRANSACTIONS

  Globalstar Managing Partner's Allocation

     Commencing with the initiation of Globalstar's services in the first
quarter of 2000, LQSS will receive a managing partner's allocation equal to 2.5%
of Globalstar's revenues up to $500 million, plus 3.5% of revenues in excess of
$500 million. This managing partner's allocation will be distributed to LQSS's
general partner, LQP. Should Globalstar incur a net loss in any year following
commencement of services, the allocation for that year will be reduced by 50%
and Globalstar will be reimbursed for allocation payments, if any, made in any
prior quarter of such year, sufficient to reduce the management allocation for
such year to 50%. No allocations have been received to date. The allocation may
be deferred (with interest 4% per annum) in any quarter in which Globalstar
would report negative cash flow from operations if the allocation were made. As
of December 31, 2001, $102,000 of such allocation has been deferred.

                                       E-13