Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 136.48

-8.3%

2:50 PM EST

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To: Dexter Lives On who wrote (120576)	6/18/2002 3:17:13 PM
From: cfoe	Read Replies (1) of 152472

and watch FON/PCS crumble under its debt load. Since this is the QCOM thread, I thought I would ask the following question. If FON/PCS should default (or approach same) and need to go Chapter 11, how would this affect QCOM? Wouldn't any reorganization keep the company operating? With no interest and debt payments due on its existing debt, cash would be freed up for aggressive marketing and price incentives to customers. With future lenders in a preferred position, could PCS still have access to whatever capital it needed for continued expansion? Given wireless (i.e., PCS) would be the jewel among FON's assets, wouldn't it sit in a fairly secure position in terms of going forward? Maybe AWE and Cingular should worry about a PCS freed from current debt load. Of course none of this would be good for current equity holders and probably not so good for current debt holders. However, I would be a buyer of an "after-default" PCS with a pure, upgraded CDMA system. Now if I could just buy that now <ggg>.

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