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

To: Jon Koplik who wrote (19478)	11/24/2000 10:06:04 AM
From: John Hayman	Respond to of 29987

Hi Jon, I found this on Metamarkets.com. John By John K. Lunde (rating 3.55) on 12:02 11.22.00 In case you didn’t catch the financing transaction between Loral, GlobalStar, and selected creditors last Friday, I’ve been going over it trying to nail down the implications of the deal. Loral took out loans from a group of banks totaling $500M to buyout Globalstar’s obligations in the same amount. Seems pretty simple until you consider that the original loans were secured by various assets, including some satellites in the Globalstar constellation. Here’s the email I received back from Loral’s Investor Relations department: Loral had been the guarantor of Globalstar's $500 million credit facility anyway, and Friday's arrangements were Loral's way of resolving the obligation represented by that guarantee. Loral has a new liability - its new credit facility - and a new asset - Globalstar's credit facility. Also, the two satellites are now security for Loral debt rather than Globalstar debt. Globalstar's balance sheet, credit quality and operating outlook were unchanged by the new arrangements. The main difference between the two arrangements is that now the satellites cannot be seized by other creditors until both companies have gone bankrupt. The underlying question is whether the satellite network will ever be worth operating. Opinions anyone? John K. Lunde Metamarkets.com