PCS is on track but he wastes a ton of verbiage and time when he speaks about the space system or the gateway system being worthless in the event of Bankruptcy. This is not going to happen b/c the players involved LOR.Q,VOD,TESAM,and Elsacom are not going to get in a total knock-down drag-out at the 11th hour. It is a waste of time to point fingers, what these guys need to do now is deal with the inevitable debt for equity swap and get on with the business of selling data modems and phones. Bernard has already stated this position as a distinct possibility, this is going to happen before the SuperBowl.
I disagree with PCS' scheme of issuing common for interest, you do not eradicate the risk of uncertainty with where the stock price may be, what you do is calculate the net present value of the likely future value of the free cash flow streams and then do one monster debt for equity swap.Clean as a whistle, the public bondholders can get appraisal rights and do not need to participate. I am confident the required majority of debtholders is in place to effect the transaction. Then you do a rights offering at the same price as the "intrinsic value" of the common to get you to cash flow breakeven, Q,VOD backstops it and waala, we are onto the next phase.
Someone else posted LMT's interest in ATC in New Zealand, I am the only person discussing the possibilty of LMT steppin for the Gp interest, this continues to be an extroadinarily interesting opportunity accomplishing much for Loral,G* and LMT. |
