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

To: Maurice Winn who wrote (15752)	8/14/2000 10:44:21 PM
From: Selectric II	Read Replies (1) \| Respond to of 29987

Mqurice- Why would Vodaphone lose their grip in a Bankruptcy? Don't they own their gateways and operating licenses? Wouldn't a new sp wanting to serve its territories have to get licensed and build new gateways if Vod didn't play ball? That could take years, couldn't it?

To: Maurice Winn who wrote (15752)	8/15/2000 10:27:14 AM
From: Michaelth1	Read Replies (2) \| Respond to of 29987

Maurice: 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 the SPs do control the situation and they are the only ones, in reality, that would pick the asset up at a low price. It's clear (to me at least) that by 1Q01, G* will still be in pathetic shape; maybe it'll have 75,000 subs by end of Q100. That means a few things: (1) bank covenants will be in default and (2) break-even still is not within sight. Imo, no one besides the SPs will put significant money into G* at that point; so if they don't do it, G* goes into BK. Loral doesn't have the funds or the ability to inject enough cash into G* to make a meaningful difference. So, if they choose, the SPs can push G* into BK with their inaction. Now, who would buy G* in BK? First, I think that the SPs would have a prepackaged deal ready for the bondholders / BK court so that they would buy the assets quickly and give the bondholders $.20 on the dollar and equity. That removes G* from BK quickly, pays the bondholders something and prevents an auction. All parties are happy. Could G* receive interest from other parties in BK? Anything is possible, but don't forget that the SPs, not G, own the ground stations and have exclusive rights to G. Who in their right mind will buy something without the support of the GW owners? Probably no one. The primary thing that prevents me from dumping my remaining G* shares is that Loral is a big loser (at least in appearance; economically, they may be better off) in the above scenario and, as managing partner, may be able to prevent it. But Loral also may choose to cut its losses. Interesting stuff.