The problem with NXTL is the $17 billion of total debt it owes. They have no free cash flow, and of course no earnings. Their bonds are trading @.70 cents on the dollar.
NII holdings, their international subsidiary, has begun to restructure its debts, and may have to seek relief in chapter 11. Some think that if things do not improve for NXTL itself by the 4th quarter of this year, they may have to do the same in 2003. The key word is if.
On top of that their business is soft, apru (avg. revenue per user) is $70 per month, down from $75 the prior year.
And to keep up with cdma technology, NXTL is spending $3 billion a year.
It is however, a great trading stock, up & down...Just look at the range today. |
