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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 137.34

+0.8%

Feb 6 9:30 AM EST

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To: Maurice Winn who wrote (127122)	2/23/2003 11:45:54 AM
From: pcstel	Read Replies (1) of 152472

But that's not QUALCOMM. They specifically did not give any claims of being 'on plan' with Globalstar. I reported that Irwin Jacobs was not going along with Bernie's enthusiastic urging to start producing millions of handsets at the announcement of service at Telecom99 in Geneva. However, I will make one point! Contained in the original 100 Million Dollar Vendor Financing agreement with Globalstar was the repayment schedule! This schedule required the first re-payment on the VF note to be on or about January 15th, 2000. Several days later Globalstar announced a "Secondary" during the Gilder hype job! And Globalstar unloaded ~8 million shares on to the public.. Contained within the context of the 8-K for the secondary were vauge references to the "New Qualcomm Agreement", but there was no mention that Globalstar failed to make debt repayments to Qualcomm. At the shareholder meeting in Feb 2000 (if memory serves me). I questioned Jacobs and Thornley regarding the repayment of this ~13 million dollars. After about 20 seconds of Jacobs and Thornley talking back and forth with their mouths covered. Thronley announced that the payments had not been paid, and that Qualcomm was in the process of renegotiating that missed payment into a larger 500 million dollar Vendor Finance Agreement. An agreement which was not finalized until May of 2000. I then questioned Thornely about the size of the Vendor Financing Agreement given the fact that Globalstar missed their January debt repayment. (Which BTW would have created an immediate acceleration demand on their Bonds, the Chase Facility, and the BofA facility.) Thornley noted that "early indications" showed that Globalstar's business was proceeding on plan and therefore justified Qualcomm 400% increase in Vendor Financing to Globalstar. While the truth was, Globalstar had in affect defaulted on it's repayment obligation to Qualcomm, which was not noted by a SEC filing by either company. In which Globalstar then proceeded with a "Secondary Offering" days later whose SEC filings failed to mention that Globalstar missed it's debt repayment to Qualcomm. Exactly one year later, when Globalstar again failed to make the January 15, 2001 repayment obligation to Qualcomm. The appropriate SEC filings were made! sec.gov So the question that has to be asked. Why did Qualcomm and Globalstar not release the data that the loan repayment was missed on January 15, 2000, and that the missed payment was being renegotiated days before Globalstar announced a Secondary Offering? PCSTEL

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