Primestar/TCI Satellite (TSATA) Message Board

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Technology Stocks : Primestar/TCI Satellite (TSATA)

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To: Goodboy who wrote (147)	1/5/1999 8:57:00 AM
From: Noel	Read Replies (2) of 442

PrimeStar Faces Lawsuit From Bondholders According to Variety, PrimeStar could face a lawsuit from bondholders upset over the near-collapse of their investment after the company failed to buy DBS assets controlled by the joint News Corp./MCI American Sky Broadcasting venture. Bondholders, mainly institutional investors, are upset that the market value of $350 million in bonds they own in PrimeStar has fallen since the ASkyB deal fell apart. Opposition from antitrust regulators forced PrimeStar to abandon the ASkyB deal. According to Wall Street, there has been a 60 percent drop in the trading price of PrimeStar bonds in the past two months, falling to about 25 cents on the dollar. Variety said 10 bondholders owning two-thirds of the bonds have formed a committee headed by Los Angeles "vulture fund" Canyon Partners and advised by New York law firm Orrick Herrington & Sutcliff. The committee reportedly contacted PrimeStar's attorneys seeking negotiation in an effort to restore money lost by bondholders, and are hopeful talks will commence in the next two weeks. PrimeStar, Orrick and Canyon declined comment.

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