Globalive makes more changes in foreign ownership spat

* Globalive to scrap intermediate holding company

* Orascom to give up or reduce certain veto rights

* CRTC decision expected by Oct. 23 (In U.S. dollars unless noted)

TORONTO, Oct 1 (Reuters) - Globalive Communications has made more changes to its structure and financing agreements as the Canadian wireless startup fights to prove to regulators it complies with foreign ownership restrictions, despite receiving significant financial backing from an Egyptian company.

Globalive, which spent more than C$442 million ($409.3 million) to buy wireless spectrum during a government auction held last year, said on Thursday it will simplify its corporate structure by cutting out an intermediate holding company.

Orascom Telecom (ORTE.CA), the company's Egyptian-based backer, has also agreed to remove or reduce its rights to veto certain corporate changes, Globalive said in a statement.

As well, Orascom "has agreed to remove all positive and negative covenants and all indemnities from its loan agreements with Globalive Wireless," it said.

Orascom has provided Globalive with financial backing that is estimated to total more than $500 million.

Canada's Big Three wireless companies -- BCE Inc (BCE.TO), Telus Corp (T.TO) and Rogers Communications (RCIb.TO) -- say Orascom effectively controls Globalive, which contravenes Canadian foreign ownership restrictions.

The Big Three have an interest in seeing Globalive's plans delayed or blocked, given that the startup plans to compete with them for wireless subscribers.

Last week, Globalive Chief Executive Tony Lacavera said he would give up a put option on his shares and Orascom would give up a related call option. Giving up put options that would allow Lacavera to sell out at a minimum price could assure that he will stay with the company.

Lacavera said he would also become chairman of the Globalive wireless operating company and its holding companies, putting a Canadian in charge of the companies' boards in hopes of further allaying regulatory concerns.

The matter is currently being heard by the Canadian Radio-television and Telecommunications Commission. The federal regulator is expected to issue a decision by Oct. 23.

A ruling against Globalive could stall its plans to launch national wireless service in late 2009.

Globalive has said Industry Canada, the government ministry, has already ruled the company is in compliance with ownership rules.

($1=$1.08 Canadian) (Reporting by Wojtek Dabrowski; editing by Rob Wilson)