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

To: KyrosL who wrote (19516)	11/25/2000 12:25:12 PM
From: SGJ	Read Replies (1) \| Respond to of 29987

Kyrosl: your scenario has merit, however it requires one to suspend reality in thinking bondholders would be given controlling interest in the company in an out of court reorganization. More likely would be an exchange of a portion of the debt for equity with conversion rights at some date in the future on the rest and equity in lieu of interest in the meantime.

To: KyrosL who wrote (19516)	11/25/2000 6:26:47 PM
From: pcstel	Read Replies (1) \| Respond to of 29987

Kyrosl: <<The main weakness of your speculation is that in the end (after two years of paying bondholders with equity) G* is still left saddled with the same debt as now, limiting its ability to cut prices drastically in order to compete>> Ahh!! Now we are starting to get somewhere!! "Limiting it's ability to cut prices drastically" The rest of the puzzle that NO ONE can seem to understand!! But it all made perfect sense when the puzzle started coming together.. What is one of the main reasons posters ON SI have stated G* has to go BK?? Hummm!! Sure it's the debt payments.. But that is not the #1 reason, which was.... G* needs to get out from under those "Greedy Service Provider Agreements"or "GSP's". Those GSP's are the "bast@rds" that have caused our grief anyway".. They invested the least, "buy a Gateway", yet they get $1.00 a minute out of the call revenue.. And again, for all those "typical and atypical Bondholders".. The Gateways and their regulatory approval are held by those same Greedy Service Providers.. So if you have your designs on the system After Bankruptcy.. Guess what.. You can discount the wholesale price ALL YOU WANT!!! BUT THAT DOESN'T GET YOU JACK ON THE RETAIL SIDE!! Even after BK.. Those SP's can still demand the same $1.00 per minute, or they could just take any reduction in the Wholesale rate and stick it in their pocket.. They could make their price per MOU $4.00 per minute! As a matter of fact.. They could just decide they didn't want to operate their Gateways anymore and close them down... And you know what Mr. Bondholder... THERE IS NOTHING YOU CAN DO, TO MAKE THEM OPERATE THE GATEWAYS, OR CUT PRICES.. As a matter of fact... If we look at who owns the Gateways.. A investment division of LORAL owns Mexico, Central America, and Brasil, and Russia. TESAM owns the rest of S. America, France, and Turkey, Vietnam. L/Q partnership owns the regulatory approvals for Gateways in North America and Puerto Rico. Good Luck cutting a good deal with LORAL's own division, and TESAM.. Between the two companies.. They have Gateways that Cover somewhere 80% or the current coverage area. So the question has been.. WHY DON'T THE SERVICE PROVIDERS CUT THEIR RETAIL RATES?? Heck, even as Maurice points out.. Even the Loralian SP have not cut rates!! WHY?? Because Globalstar did not want them to cut prices too much!! It makes it appear that Globalstar has a distribution system which G* has no control over the retail pricing... Sounds not too good for a new owner, that might find it impossible to control the retail price of the system..If GLP owned the Gateways.. That would be one thing.. But they don't. BLS questioned that the voice/LDR market was not there with the Iridum debacle" 3 Months into the Globalstar launch.. given the initial subscriber numbers.. He knew that the covenant's would not be met"? So did every SHORT!! It was simple math.. .35 cents a minute time X number of User Terminals produced, X 40 MOU per user X manufactures stated production levels = No way to make the covenant's.. ALMOST IMPOSSIBLE I WILL SAY!! So he knew that additional funding would be very dilutive. And he knew that he needed to get the bondholders to renegotiate the debt.. So he set out on THE GRAND PLAN.. He was going to make Globalstar seem worthless.. Then he was going to DROP THE BABY, and wait for the bondholders to scream... CATCH THE BABY" To even add to the perception of Gloabalstar has no value.. Even Qualcomm refrained about any commitments to Gloabalstar.. No announcement about Omnitracs ported to Globalstar.. As a matter of fact.. I was the one who discovered that Qualcomm had filed for a trademark for the mark "Globaltracs" and released it on the Message Boards.. Which I am sure came to Jacobs/BLS attention.. Now, they would not want bondholders to think that Qualcomm has designs on the system.. So Qualcomm killed the applicaiton.. Sure, they could have just left the application open, and eventually completed the process.. But they killed the application.. And the USPTO web site says so... tess.uspto.gov Just type in Globaltracs as the search criteria... What kind of indication did that give as to Qualcomm's designs on Globalstar.. "Dead".. The same thing with Wingcast... Seems like a natural.. But, No indication that Qualcomm would use Globalstar.. Yes, Mr. Bondholder.. even the company that built and designed most of the system thinks it's worthless. Yes, Mr. Bondholder.. Those Greedy Service Providers are "out of control".. They hold us captive in their designs to extort "unreasonable profits from a minimal investment.. In or Out of Bankruptcy".. Maybe they could lose their "exclusivity".. But then what.. Do you want to install a new Gateway, and apply for regulatory approvals in all those countries again.. Sounds expensive!! Too expensive!! Look Mr. Bondholder.... It's Space Junk in it current formulation.. Do you really want us to BK it, and lose everything? If not.. Just yell... "Catch the Baby" PCSTEL