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Technology Stocks : GST Telecom (GSTX) 4th quarter earning -- Ignore unavailable to you. Want to Upgrade?

To: Rob Preuss who wrote (358)	7/11/2000 2:46:42 PM
From: Susan Saline	Read Replies (3) \| Respond to of 369

I guess I wold take a total loss at the end of the year ... rather than take a 98% loss now and wait til then ... to see what happens .. stranger things have occured so from what I gather they company wants an outrageous buyout price? or go bk and start out new as another company? and can they do that? wicked isn't it

To: Rob Preuss who wrote (358)	7/11/2000 3:00:49 PM
From: Bernard Levy	Read Replies (5) \| Respond to of 369

Hi Rob: Current stockholders are virtually certain to be wiped out in a reorganization. What killed GST was its $1.2B in debt. When the company talks about reemerging from Chapter 11, here is what it is hoping for: a) Wipe out stockholders. b) Find enough financing to pay vendors. c) Get bondholders to exchange say 66% of their current bonds for stock in the reorganized company. The result would be a company with only $400M or so in debt and a much better chance of making it. Looks at the former CAWS for a blueprint of this type of reorganization. Best regards, Bernard Levy