Globalstar Telecommunications Limited GSAT Message Board

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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT

GSAT 60.01

+0.4%

Jan 9 3:59 PM EST

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To: Lu_Xun who wrote (21183)	1/16/2001 5:28:50 PM
From: Rocket Scientist	Read Replies (2) of 29987

I agree the timing of the announcement is perfectly logical--in fact almost inevitable--considering that there was no way that G* could fund the debt payments to Q, L and the next series of bond coupons. If G had paid L and Q this week, then stiffed the bondholders a few weeks later, the payment very likely would be reversed in C. 11 and would certainly poison the well of any negotiations with the b/h. This way Q and L, which together hold nearly 50% of the debt anyway, can claim to the b/h that all the debt holders are being treated equally. I think the debt will be converted to equity, and rather quickly....the common PI and GSTRF s/h will be diluted by 90%, maybe, but they'll end up with a stake in a debt-free entity with (one hopes) a more rational marketing plan and pricing system, so better off than they are today, anyway.

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