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

To: zebraspot who wrote (17681)	10/6/2000 5:10:36 PM
From: Rocket Scientist	Respond to of 29986

<<Some (over at Yahoo) have been saying that if G* goes BK then LOR ends up(via their bonds) with a lot of G* minus the debt load, and that makes LOR a great place to be at this juncture>> I think this is correct. In my understanding, G* (unlike Iridium) has no secured creditors. If G* defaults and Loral fulfills its loan guarantee obligations, Loral will be a big holder of G* debt, along with Qualcomm and the public noteholders, and I believe the notes, Loral and Qualcomm vendor financing, and the bank debt guaranteed by Loral all have the same ranking in a Ch 11. Plus Loral along with Qualcomm has licenses and IPR that G* needs to operate. So I believe it will hold a lot of cards in a reorg negotiation. Hope it never comes to that, of course...