Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 61.23

+3.5%

2:08 PM EST

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To: pcstel who wrote (19495)	11/25/2000 10:58:49 AM
From: Win-Lose-Draw	Read Replies (2) of 29987

What would you think bondholders who may not understand the underlying value of the system's action be? Let's see if I'm getting your drift...bondholders see the threat of the loan being called by LORAL and G* going into bankruptcy. This threat is real to them because they no longer see much real value in G* so it is, in their minds, conceivable that G* will be allowed/forced into bankruptcy by one of its major principals, in the case LORAL. What LORAL is trying to do is get that debt cancelled (or whatever) on super terms by allowing the spectre of bankruptcy to hang over G* until bondholders are so freaked they sell back their loans for peanuts. Small peanuts. Small unroasted, unsalted peanuts. The effect on G* equities might be continued downward pressure to create a stronger and stronger impression of the company Doin' The Titanic, and that will last until LORAL finishes poking bondholders with a sharp stick. Is this what you're getting at? EDIT: Downward pressure also possible due to debt-for-equity dilution.

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