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: Michaelth1 who wrote (15750)	8/14/2000 8:08:11 PM
From: TMann	Respond to of 29987

bernie says G* will not fail; he even plans to put a sticker on every phone with that statement. He says funding by partners will be a coming. I believe him. As far a 3Q numbers go, I'm hoping for 23-28K subs and 3M MOUs. Still very pathetic but what do you expect from a stealth product. If we don't get some big announcements soon, I'll be trading my G* shares in for wheaties.

To: Michaelth1 who wrote (15750)	8/14/2000 8:17:36 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 29987

Michaelth1, wiping the debt is a great idea if you are the one who can control the situation and pick up the assets for a low price. But if you were a bond holder, would you sell to Vodafone or would you sell to the highest bidder? I suspect the highest bidder. Sprint might choose to bid higher than Vodafone. Hutchison might bid higher than both. Or NTT might blow the lot out of the water. Check out the spectrum auction in Germany today. Already, the UK auction is starting to not look so hugely over-priced. The whining people like Mucho Mass and other apologists for the doomed VW40 [W-CDMA, DS-CDMA, 3G4P gangsters] wimper that the auctions are too expensive and the winners won't be able to afford to build a network! What a joke. Imagine that. These bidders are allegedly hopeless and have no idea what to do but they have the financial backing to bid $40bn or so [maybe a lot more - we'll see] on spectrum. It is obvious that they have a plan and expect to make a lot of money on WWeb business. They will have to use efficient spectrum management to do that. Therefore they will use CDMA by QUALCOMM and they will use it soon. They will not wait until 2004 or whenever the 3G4P parasites finally lumber into gear. Anyway, back to Globalstar. If some spectrum in Germany is worth that much, what is spectrum all around the world worth? Especially if the satellites are all up there, the gateways are built, the handsets are in production and there are some customers already. Quite a bit I'd say. Certainly a lot more than $5bn. Vodafone has got a lock on Globalstar and they do NOT want the thing to go bust. If they lose their shareholding, exclusivity and gateways, they could have to pay a fortune to get it back again when bidding against Sprint, Worldcom and others. They are enjoying much, much higher margins on Globalstar minutes than they are on terrestrial minutes. They are greedy pigs! They had better be careful. China Telecom might buy the whole thing! They could sell the minutes cheap in China through fixed phones and undercut Vodafone's USA, Australian and other terrestrial minute prices. Vodafone would look really stupid. NTT could finance China Telecom in a joint bid, with China Telecom taking on NTT's W-CDMA, just as an added bit of fun! It would be nice to ditch the shareholders and bond holders and get some clean, excellent assets on the cheap. But it won't happen. The bids will be too high. The best way to buy the assets would be in a dilutive refinancing when the Globalstar LP back is against the wall. While others are waiting for BK, get in first and grab the lot at distress prices. Most shareholders would be thrilled to escape with $30 a share now. They'll only get my shares by way of compulsory acquisition in a takeover. They can have them now for $200. Next year, they'll be $400! [assuming the service providers start moving minutes in revamped marketing plans]. Mqurice PS: It would almost be nice to see bankrutpcy to see Vodafone lose their grip and Hutchison take over in Australia and start selling minutes cheap with the good quality QUALCOMM phones, with car kit etc. They could rip Vodafone to pieces with nationwide cheap coverage, 100% CDMA with WWeb coming on-line. Vodafone will NOT want that to happen. So far, that's the way they are going. Bernie might be saying to them, "Just give me a whole lot of money and I'll let you off your exclusivity timetable - I'll give you another 6 months to perform and NO, you can't have any more Globalstar LP shares".

To: Michaelth1 who wrote (15750)	8/14/2000 9:30:57 PM
From: literaryfx	Respond to of 29987

Two posts from Yahoo stating that bk and the debt due 03-331-01 are not that a big problem. messages.yahoo.com by: biglongtwo 8/12/00 3:58 pm Msg: 61984 of 62005 I am A Bankruptcy atty and there is very little chance a BK would be used in Gstar due to the capital structure. messages.yahoo.com by: midgetlovesbernie (47/M) 8/12/00 4:33 pm Msg: 61990 of 62005 Correct about BK Unusual feature of gstar bank debt compared to most other bank debt is that it is unsecured, and is in fact pari passu with all of the bonds. In other words, the bank debt has no structural seniority to the bonds. The bank group does have covenants that kick in on 3/31/01, but I really don't think that the banks are going to play hardball, thereby kicking off cross-default provisions with the bond group whose claim is 4 times as big as the banks. If they see any chance at all of working this thing out, they'll do it. "Any chance" could mean the perception that the business is working (even if the $100mm bogey has been reached), or it could mean the perception that the partners are going to continue to support it (QCOM, with its vendor financing, is truly not going to be willing to throw in its lot with bondholders if they think there's anything of value here worth saving. My opinion: I think they think that there is.) Speculation that VOD is sandbagging and waiting to pounce on the carcass is stupid; once this thing bets hauled into BK court, they'll have a lot of competition, including Craig et al. There are no slam dunks in bankruptcy court. Negotiation? Posturing? Even some dilution? Maybe. BK? Don't think so...unless all--repeat, all--of the partners think this project is just celestial debris. Not likely--that's the beauty of having state-of-the-art technology, even if the current management is screwing it up. I'm no legal expert, but these explanations seem to make sense. Ken