Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 56.80

+0.2%

3:59 PM EST

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To: pcstel who wrote (19343)	11/17/2000 3:38:41 PM
From: Rocket Scientist	Read Replies (1) of 29987

Well, Loral already got the same number of warrants (albeit at a much less attractive strike price) for guaranteeing the bank loan, that Q got for actually making a loan, itself. Now Loral has elected to buy back the loan from the banks rather than wait for the inevitable call to make good on its guarantee. G* isn't getting any more money from this deal, so why should Loral get any additional consideration. OTOH, Loral now has the same rights that the banks did, with respect to holding G* to covenants and repayment terms. It makes for a much cleaner negotiation with the SPs, in my opinion. In fact, why shouldn't Q & L, each holding 500M$ of G* debt, tell the other SPs that they better (collectively) come up with a loan of a similar amount, or else Q, L and the bondholders will split up G* between them.

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