Quoting from the 10-Q:
2. ORGANIZATION AND BUSINESS
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As of September 30, 2000, GTL held 40.3% of the outstanding ordinary partnership interests, 100% of the outstanding 8% convertible redeemable preferred partnership interests (the "8% RPPIs") and 100% of the outstanding 9% convertible redeemable preferred partnership interests (the "9% RPPIs") of Globalstar. GTL accounts for its investment in Globalstar on the equity method, recognizing its allocated share of net losses in the period incurred based on the ordinary partnership interests it owns.
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5. GLOBALSTAR ADDITIONAL SYSTEM COSTS AND FUNDING
Before any additional financing, Globalstar expects to end 2000 with approximately $175 million in cash and expects that this estimated cash balance will last into the second quarter of 2001.
Over the next 12 months, commencing on October 1, 2000, Globalstar will require significant additional funds to cover its cash outflows which it expects will include operating costs of approximately $235 million, cash-pay interest of approximately $245 million and other cash requirements of approximately $43 million for the eight spare satellites being constructed by Space Systems/Loral, Inc. ("SS/L"), $144 million for repayment of vendor financing and debt and approximately $60 million for the financing provided to Globalstar's service providers to assist in the purchase of gateways, fixed access terminals and handsets. These expenditures are partially offset by expected receipts of approximately $135 million from the service providers as repayment of such financing. The amount of such additional funds will depend, among other things, upon the amount and timing of revenues generated. If Globalstar is not able to raise sufficient funds, the lack of funds would have a material adverse effect on GTL's investment in Globalstar.
Globalstar also has secured from SS/L twelve and eighteen month call up orders for two additional Delta launch vehicles. The total future commitment for these launch vehicles is approximately $86.5 million plus escalation of 3% per year. If these launch vehicles are not used by the end of 2003, Globalstar will incur a termination charge of approximately $18.6 million.
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