Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: djane who wrote (7208)	9/5/1999 1:39:00 AM
From: djane	Read Replies (1) \| Respond to of 29987

Euroconsult on 'Iridium Effect' on Satellite Finance: Comment (via I* yahoo thread) Bloomberg News September 3, 1999, 9:12 a.m. PT Paris, Sept. 3 (Bloomberg) -- Stephane Chenard, chief analyst at Paris-based industry consultancy Euroconsult, talks about the climate for financing satellites projects in the wake of Iridium LLC's recent bankruptcy filing. Euroconsult held a two-day conference here on satellite finance. Chenard spoke to Bloomberg there about the climate for satellite finance as well as issues including insurance and growth prospects. ``Other project sponsors in the satellites industry say yes, this (Iridium filing for bankruptcy projection in August) has made their life more complicated in trying to raise money. I think the major financial institutions recognize that Iridium's problems were largely specific to the way Iridium structured its business, its business plan, or even the terms of its bank loans. The same may apply to ICO (Ico Global Communications Ltd., which filed for bankruptcy protection Aug. 27) but we don't know the full story on these two bankruptcies yet. ``However, among the smaller investors, the bondholders, the pension funds, the other animals of the public money markets, suddenly the term satellite is a bit like the term real estate some time ago.' On the subject of whether there's even a market for satellite-based telephones offering global coverage, considering the big advances made in coverage offered by cellular telephones: ``The common wisdom is that Iridium is a failed experiment which may come out happily. The fact is, there was no rush on their terminals. There may be a market, but whether that justifies a $5 billion satellite investment is a different question. When Iridium was conceived in 1987, cellular coverage was very spotty. The satellite companies since have been showing maps purporting to show that about 95 percent of the world's surface would not be covered by cellular in 2000, but the cellular industry may have a billion subscribers within five or 10 years. The economies of scale that you get then, the level of investment in research and development are such that the cost of covering another square mile is falling like a rock. ``One example is Motorola, which a few years ago announced that by some clever software trick, they could triple the range of a cellular repeater -- meaning that your cell phone would still work within 120 kilometers of an area that has cellular service -- that eats away at the Iridium market. Little by little, it edges the satellite firms to an ever-tinier market of oil executives who travel to Antarctica.' On where growth prospects lie in the industry: ``Iridium and ICO have very high visibility now, though the story may change. In two or three years they become known as the two great company turnarounds. ``But the satellites industry still has very bright prospects in many different markets, from television distribution to public telephone in developing countries. So there are very many business opportunities. Next year alone we expect to see 41 commercial communications satellites launched. Most of these hopefully will generate profits. ``Right now there is a big window of opportunity for satellites to carry Internet traffic between the places where Internet content is produced --today mostly the U.S. -- to places where it is consumed, which may not be well served by communications networks because the communication operators of these countries have been caught unawares of the Internet's development. ``If you are surfing in, say, Malaysia, it is likely that your Web page will come via satellite. How that will be the case, maybe not eternally, but right now in some parts of the world it is the biggest business opportunity by far for the satellite companies.' ``We've estimated the market over the next 10 years will be approximately in the area of $15 billion, plus maybe $30 billion for ground equipment to run these systems. It's a small compartment of the telecommunications industry.'

To: djane who wrote (7208)	9/5/1999 1:44:00 AM
From: djane	Respond to of 29987

A new era for Iridium. Satellite communications firm begins restructuring (via I* yahoo thread) By Jonathan Sidener The Arizona Republic Sept. 2, 1999 The nitty-gritty restructuring of Iridium LLC, the corporation behind the global satellite network, begins today, after the hiring of restructuring specialists and the departure of the interim chief financial officer. Iridium said Wednesday that it has retained Alvarez & Marsal Inc., a New York-based turnaround firm, as well as two of its managing directors, Joseph A. Bondi and David R. Gibson. Bondi will head the company's financial restructuring as chief restructuring officer. Gibson will serve as interim chief financial officer, replacing Leo Mondale, who has resigned. Mondale becomes the second CFO to leave in five months. Bondi and Gibson will report to CEO John Richardson. Mondale, who was involved in raising initial investment capital for the company, was elected CFO in April of this year. In a written statement about his departure, he said that he accepted his position as part of an effort to achieve an out-of-court reorganization of Iridium. With the filing for bankruptcy protection last month, it became time to step down, he said. "I accepted the CFO position to support Iridium's efforts to bring about an out-of-court restructuring. Since this is not longer possible it is appropriate for me to step down and let the new management team, with reorganization experience, take over," he wrote. Mondale became CFO as part of an April management shake-up that included the resignation of Edward Staiano as chief executive after a dispute with the company's board. Spokeswoman Michelle Lyle said it was too early to have a realistic timetable for the reorganization. "That's why we're hiring these people," Lyle said Wednesday. "They're starting the job tomorrow." Bondi's turnaround experience includes his role as chairman of restructuring of MobileMedia Inc. He also served as senior vice president of both Phar-Mor, Inc. and Republic Health Corp. Gibson has experience in corporate restructuring in wireless communications and other industries. He most recently served as senior vice president and CFO of MobileMedia. Iridium, whose biggest investor is Motorola Inc., filed to reorganize under bankruptcy protection after defaulting last month on $1.55 billion in bank loans. The satellite system struggled to find users for its global communications system. The company's original projections called for as many as 600,000 customers by the end of 1999. The company's last public statement on subscriber information set the total at slightly more than 10,000 in March. More recent analyst estimates have put the number at about 20,000. Tempe-based Iridium North America said Wednesday that subscriptions have increased by about 25 percent since June but declined to release specific numbers. Release of new numbers has been delayed by the bankruptcy filing, Lyle said. $$$ Jonathan Sidener can be reached at (602) 444-8169 or at jon.sidener@pni.com. Copyright 1999, Arizona Central Search The Republic's Archives \| Subscribe to The Republic

To: djane who wrote (7208)	9/5/1999 1:46:00 AM
From: djane	Respond to of 29987

Mutual funds buying LOR/G* Top>Business & Finance>Investments>Sectors>Services>Communications Services>LOR (Loral Space/Communication) ANOTHER MUTUAL FUND BUYING LOR by: bronxbomb7 19089 of 19100 investors bus. daily tuesday, sept. 7 issue `SELECTED AMERICAN SHARES` fund is a recent buyer of 1,186,200 shares of LORAL SPACE & COMMUNICATION add them to the already impressive list of mutual funds that have been accumulating LORAL ! 1. schwab 1000 fund 2. mas mid-cap growth 3. vanguard equity income 4. morgan stanlet equity growth 5. franklin dynatech 6. fidelity select technology 7. alliance growth b 8. torray fund 9. first eagle fund of america 10. franklin equity fund cl a IT IS TIME TO BUY STOCK IN `LORAL SPACE $ COMMUNICATION` ---NOW!!! BB7 Posted: 9/4/1999 12:44 pm EDT as a reply to: Msg 19088 by BrightonBeachBum