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

To: Jon Koplik who wrote (19488)	11/24/2000 2:35:36 PM
From: pcstel	Read Replies (2) \| Respond to of 29987

Nothing magical.. The question is WHY buy the debt.. (Maybe (for those other than G* and Loral) receiving a larger piece of Globalstar (?)).. So Vodaphone is going to buy the debt, convert it into equity? Maybe!! That is a possibility.. But LORAL! No way.. Their stock would dive on the news the bought some more equity in the system. Same goes for Qualcomm.. It's the same reason Qualcomm would never buy G.. They have spent the last 2 years clearing their plate of "potential commercial competition" with it's licensing customers... i.e. LWIN spin, Infra and UT division sales, Current SpinCo... If any of the partners (If you want to call Vodaphone that?) started buying the debt.. That would give G some perceived value to the bondholders.. No, The lack of buying the debt by any of the G* partners only adds to the illusion of worthlessness.. Look Mr. Bondholder.. not even Qualcomm will buy some of this debt at .10 on the dollar.. (Your profile says you invest in G* bonds.. Correct?? Even you were the first to mention that you can not understand why none of the partners has stepped up to purchase the debt!! Makes you think that the bonds are worthless dosen't it!! And you probably are well one of the well informed bond holders... what about those not so informed.. Looks bleak!! Wouldn't you agree?? Non of the partners want to buy the debt at even ten cents on the dollar! No big contracts for the system.. 21,000 subs. 100 million a quarter in cash burn. No news!! Cash on hand runs out in April. Loral states no more funding without "cosiderable improvement in fundamental's ". "Qualcomm has not pledged any more money either.. Only the statement that they have "faith" in Globalstar.. Yes Mr. Bondholder.. IT'S SPACE JUNK... The only thing the bondholders have left to hold onto is the fact that LOR bought the credit facility, and LORAL will obviously not call the loan!!! Surely, LORAL and partners will come up with more funding to keep it going!! So the bonds have some "hope" of being worth something.. That's why they are selling for a dime!! Without hope.. They are worth a couple of pennies!! And obviously some bondholders that are selling think that they are worth much less than a dime! Jon, If you want to know my SPECULATION on how things will proceed.. PM me! I would appreciate a bondholders perspective on my theory! Thanks, PCSTEL