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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: JMD who wrote (5721)	7/14/1999 3:13:00 PM
From: djane	Read Replies (1) \| Respond to of 29987

CNBC 2nd segment on I entitled "End of Iridium" just ran. Here's the transcript: Ron Insana: Investors are wondering if the end of I* is near after MOT comments. Really troubled times there, eh Phil? Phil LeBeau (live from the Chicago bureau): Very troubled, Ron. This is the clearest sign yet that the next 3 months will show us whether I* will survive. It may be okay down the road, but investors continue to bail out -- down $1 or 15% for the day to just under $7 and down from year high of $60. Latest problem followed comments from MOT earnings CC today. MOT made it clear that they will only go so far to help I* but they need help from other creditors. Questions and references to I* being liquidated. This is the first time the subject of liquidation has come up extensively. I* has become a costly and problem filled program. 3 Big Problems Facing Iridium (shows chart) -Restructuring $3 billion debt. Biggest problem. One idea is for debtholders to exchange their current notes for debt which doesn't pay interest for a long time. -Failing to add subscribers quick enough. Has only 15,000 subscribers worldwide but I* needs 1 million subscribers to become profitable. *-Finally, I desperately needs to change its image. From Wall St. to potential customers, Iridium is seen as a dying company.** One analyst says I* can survive this crisis but it won't be easy. Armand Musey (BofA analyst) says I* has tremendous upside, but it will take a while to get people used to the idea of paying a couple thousand for a phone and a couple dollars per minute to use the phone. At the same time, bankers are breathing down their neck and looking for their next interest payment. A few minutes ago, LeBeau spoke to I* spokeswoman, who said the company isn't aware of any consideration being given to liquidate the company. That may be true, but something clearly has to change with Iridium and its creditors, and it has to happen soon. Closes with 90% slide in I* price from $60 to $7 in last year.