Broadband Wireless Access [WCII, NXLK, WCOM, satellite..] Message Board

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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..]

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To: Ken Muller who wrote (1778)	5/15/2001 5:20:13 PM
From: transmission	Read Replies (1) of 1860

nypost.com WINSTAR IS FLYING HIGH By PAUL THARP -------------------------------------------------------------------------------- May 15, 2001 -- Bankrupt wireless operator Winstar Communications went down to the wire yesterday and won a last-minute bailout of up to $300 million to remain in business. Facing a possible shutdown, the crippled broadband firm won a bankruptcy court approval in Delaware to go after its operating loan package from a banking syndicate. The financing is crucial for the company’s turnaround efforts. A federal judge last week had blocked the loan package over concerns that Winstar didn’t have adequate collateral for the loans. But the bankruptcy court said Winstar, under certain conditions, has now met its legal standards for the financing. Winstar has been operating on a $75 million credit line it already got from the banking syndicate and has drawn down much of it. Investors who still hold Winstar’s distressed stock got a lift from the financial rescue. The distressed stock rose 1.1 cents to 5.3 cents in heavy trading of nearly 1.2 million shares. A year ago, it traded at $45 and was a darling of Wall Street as the No. 1 provider of wireless broadband services for businesses. When Winstar filed for bankruptcy protection a month ago - listing assets of $4.98 billion and liabilities of $5 billion - it was delisted from the Nasdaq and analysts stopped covering the stock. Securities were dumped on the distressed trading desks at various firms. The financing package is being provided by a banking group led by Citicorp USA Inc. Under the court’s ruling, Winstar may borrow as much as $300 million. Besides Citicorp, the initial lenders include the Bank of New York, Credit Suisse First Boston, CIBC Inc. and J. P. Morgan Chase & Co. Winstar Chairman and CEO William Rouhana Jr. said the financing would allow the company to continue its normal operations, which have been built in more than 60 major cities and abroad. "We will continue to stay focused on providing enhanced broadband services and on maximizing the untapped potential of our already existing, domestic built-out broadband network," said Rouhana. Last year, Winstar posted $759.3 million in revenue - and an $870.17 million loss. Another vital element in Winstar’s turnaround efforts is a $10 billion lawsuit it filed against Lucent Technologies, once its largest vendor.

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