Pierre: <Since Q* and LOR have the power to forestall what you have suggested BLS was posturing to forestall, how do you explain BLS's actions. Why'd he do what he did (to paraphrase Mary Ann Faithful, who sounds a lot like Heather Nova) if he didn't have to.>
There is an old saying that many people around the various boards could learn from.. That is.. "It's easier to attract a Bee with Honey, than Vinegar"
Now there are many various scenario's running around that QCOM and LOR are out to "screw" the common and the bondholders!!
Sorry, I have the deepest admiration for Irwin Jacobs.. And I would give the man my entire "monetary holdings" to safe guard for me.. Without a receipt!! BLS and IJ are not "trying to rip off anyone or any company".. What they want, is what they have been requesting, for the last 9 months.. MORE TIME .. More time to "reorgainze the business plan", shift product development to new markets and new services, markets that are much more "promising" than I always thought existed with the "MSS voice segment".. THEY WANT MORE TIME!! And they want "everyone's cooperation. So the Bondholder's need to understand just how "VALUELESS" the system is in it's current form of structure in order to "go along with the plan".. And of course, a "eager to comply bondholder" means the better deal that can be cut for everyone involved.. Of course, BLS shows up at the Poker Table with a "clean deck" Shuffels the cards, and deals them out "fair and square".. However, he has 4 Aces up his sleave.. Just in case, things don't go as planned.. I mean.. I am sure neither Loral nor Qualcomm would really want to "force the issue" in this case.. But.. As they say.. Always be prepared!! So if the Burro Bondholders don't want to move.. BLS and Company can get out the ole'. we can vote against you "cattle prod".. Then the Bondholders that were looking forward to Pi$$ing all over them.. Will suddenly get all depressed, "When they find out how powerless they really are".. and start looking for the Aspirin!! So instead of BLS or IJ dealing the cards.. We have our Arbitrator (Blackstone) to find a solution that is "palatable" for all interested parties!!
In the end.. All BLS and IJ want.. Is More Time!! That's it!! More time!! And if you are willing to play the game as a Bondholder.. You might even make a nice chunk of change for your time!!
<Second question: If you're now satisfied that he can prevent the bond holders from forcing BK, are you a buyer of equity here? If not, why not?>
Well I bought over 200K shares today!! But, I don't think the risk is for everyone.. But, my money is that since IJ is involved.. No one is going to get "screwed" here!! As long as everyone is on the same page, and with the same end result in mind!!
I came across all this back in November, when I formulated my "VALUELESS IN BK" concept. This was just a little pieces of it that I did not expose.. That is why I was so "vocal" about the "Vendor Finance Repayment" due Loral and Qualcomm on Jan. 15th.. Most people didn't even know they were due.. But, I was fascinated by the fact that.. If they were paid.. L/Q would probably give up their "control" ratio of NOTES. That is why I sold my previous $2 9/16 position for a loss at $2.. Because, I really doubted that L/Q would give up that NOTEHOLDER control "ratio" over 45 million dollars!! I Bet on a Default!!
So now both companies "Write it off!".. They get credit for taking the write off!! And if the deal with the bondholders can be achieved.. They still own their "original PI's".. But the "cash burn" drops way down.
With the existing funds.. A revamped G* might have enough cash on hand for another 7, maybe 8 quarters!! IMO..
(As a side bet!! I always thought that GPowers and Company figured this out some time ago.. That is why the bought G* aggressively (after the QCOM Vendor Finance agreement announced in early 2000 and finalized in May 2000).. Which I am sure they questioned the motives. As I did!
PCSTEL |
