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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (86637)	12/11/2000 12:50:51 PM
From: accountclosed	Respond to of 132070

thanks, mb :)

To: Knighty Tin who wrote (86637)	12/11/2000 12:50:51 PM
From: accountclosed	Respond to of 132070

thanks, mb :)

To: Knighty Tin who wrote (86637)	12/13/2000 5:23:26 PM
From: Gone to Money Heaven	Read Replies (1) \| Respond to of 132070

Michael, what's the problem with FMO is it all that debt? also is this Covisant B2B exchange going to erode profit margins for companies like FMO? If the company's got anything left maybe those 2009 notes selling for 19 cents on the dollar are the way to go?? from Nov 22nd reuters ----Federal Mogul's stock fell 18 percent Wednesday on the New York Stock Exchange, closing at $2, down 7/16. It was trading at $2-3/8 immediately before the announcement. The stock has fallen 90 percent this year. One dealer on Wednesday offered the company's ``distressed'' 7.5 percent notes maturing in January 2009 at 19 cents on the dollar, with an effective yield to maturity of 46.22 percent. Federal-Mogul's debt carries ``junk'' grades. Junk debt usually carries high yields to compensate investors for extra risk. A rating cut can result in higher borrowing costs. Moody's cut Federal-Mogul's $2.325 billion of senior unsecured notes to ``B2,'' a medium junk grade and its fifth highest, from ``Ba3.'' It made identical cuts to the company's $1.75 billion of senior unsecured bank loans. It also cut Federal-Mogul's $575 million of junior subordinated bonds to ``Caa1'' from ``B2,'' and made several other cuts. Moody's said ``the company's operating cash flow has steadily declined over the last 12 months, with reported quarterly results repeatedly falling materially below management's earlier market guidance.'' The agency said an expected decline in original equipment production volume next year ``will likely place further pressure on sales and margins.'' Federal-Mogul derives about 55 percent of its sales from the original equipment market.----