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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: SafetyAgentMan who wrote (8483)	10/14/2000 7:46:53 PM
From: Rocket Scientist	Read Replies (1) \| Respond to of 10852

SAM, where do you get s/h equity of 1.8B$? I see 2.853B$, as of Q2, including the non-recourse-to-Loral Orion debt. But if Loral assumes this loan, it will have as much G* debt as it presently does equity; worst case for G, imo, is far from a complete loss for Loral. A scenario that works for Loral s/h is G equity getting diluted, maybe even to zero, and the debtholders (Loral, Qualcomm and the bond owners) splitting up the company proportionate to their debt holdings.

To: SafetyAgentMan who wrote (8483)	10/14/2000 7:58:59 PM
From: KyrosL	Respond to of 10852

SAM, The idea that if Loral assumes the B of A loan it automatically loses $500 million is nuts. If G* does not go BK, Loral loses nothing. If G* does go BK, the B of A loan is a substantial proportion of G* debt load and Loral will get a proportional share in equity of the post-BK G* entity, which, unburdened by debt, can really fly -- they will be able to sell minutes at terrestrial per minute prices. I believe that in a G* BK situation, Loral will get substantially more than $500 million in relatively short order. Kyros