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

To: Geoff Goodfellow who wrote (12337)	5/7/2000 12:52:00 PM
From: Rocket Scientist	Respond to of 29986

Geoff, you're technically correct:<< as i recall isn't Globalstar already in violation of failure to comply with some existing loan covenants? >> and I was oversimplifying a little, but not unfairly, imo. G* has two main bank credit facilities: The first dates back to '95 or so, is guaranteed by Loral, Lockheed Martin (which absorbed this obligation with its acquisition of "old" Loral) and others. It's for 250M$ and was undrawn as of y/e '99. That's the one that needs to be extended, and for which G* is not in compliance with the (pre-Zenit) Revenue covenants. The second facility is for 500M$, was established last summer, is guaranteed by Loral, and has revenue covenants that start to kick in 3/31/01. Some 400M$ of it had been drawn down as of y/e '99. The non-compliance with the first LoC's rev covenants has existed for a long time, and was predictable (post-Zenit) for longer....I believe it was already extended once, even with those non-compliances....and G* hasn't drawn it down, so I ignored it in the previous post.