Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 60.85

-9.6%

Jan 7 3:59 PM EST

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To: Maurice Winn who started this subject	10/6/2000 5:35:48 PM
From: Rocket Scientist	Read Replies (4) of 29987

It just occurred to me that it may not be a coincidence that the net cash raised from the BS deal is identical to the bank's revenue covenant requirement due 3/31. Maybe there's an understanding that the bank won't mind if G* earns a 100M$ by selling stock rather than selling minutes....cash is cash, right? Carrying that a step further, the next loan revenue covenant falls due 6/30/01 and requires 150M$ in the trailing 12 month period. BS plus the partners' purchase fills that requirement, too. If that's correct, than the next check point is 9/30/01 by which time 300M$ revenue in the trailing 12 months is supposed to have been recorded. 300M$ less 100M$ from BS (the partner's investment will be more than 12 months old by then) leaves 200M$ of real revenue to be recorded in the next 12 months (less whatever other stock G* manages to sell).

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