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

To: rf_hombre who wrote (19154)	11/8/2000 12:05:54 PM
From: Tahoetech	Read Replies (1) \| Respond to of 29987

It was suggested on the Yahoo board that this might be the first step in converting the debt to equity...thoughts?

To: rf_hombre who wrote (19154)	11/8/2000 12:46:30 PM
From: pcstel	Read Replies (1) \| Respond to of 29987

Tahoe: Re: Debt to equity.. The problem with that is the dilution involved. In May, QCOM recieved warrents for somewhere around 3.4 million partnership interestes @ approx. $43 dollars per, for simply providing 500 million in Vendor Financing.. GSTRF was trading @ around $10.5 a share, which corresponds to the $43 per partnership interest. 3.4 million partnership interests would correspond to about 13 million shares of common. Now LORAL is going to "Finance" 500 million of G* debt. So if a deal for the funding was similar (dollar for dollar) to that of the QCOM deal.. Then LOR would recieve 13.6 million partnership interests with the stock @ $2.5 (convertable to approx. 54 million shares of common stock).. Loral would recieve this for just FINANCING the 500 million.. (GTL/GSTRF only has about 95 million shares total) Now if you want to start talking about actually a debt to equity conversion.. GTL's market cap is only 265 million dollars, GLP current market cap is only around 700 million dollars.. So how much of GLP's equity (that LORAL already dosen't own), would LOR recieve for actually providing a debt for equity swap @ 500 million dollars? PCSTEL