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

To: Pierre who wrote (21179)	1/16/2001 5:00:08 PM
From: Tahoetech	Read Replies (1) \| Respond to of 29987

>>>If I had to guess, there was an attempt by BLS to get Q* and VOD to kick in, and they turned him down. Best he could get was an indication from Q* to "take a charge" and let situation ride for short term. Not sure he got anything from Gent, <<< I bet they discussed the implementation of data on the G* system and how Vod. may - or may not - profit from it...

To: Pierre who wrote (21179)	1/16/2001 5:00:48 PM
From: Jon Koplik	Respond to of 29987

WSJ's article about today's G* news. January 16, 2001 Globalstar Suspends Payments On Debt in Bid to Conserve Cash A WSJ.COM News Roundup NEW YORK -- Globalstar Telecommunications Ltd. on Tuesday said it stopped making payments to creditors and suspended dividend payments on its preferred stock in order to conserve cash. The cash-strapped satellite-telephone operator estimates the suspension of principle and interest payments on its funded debt will save the company about $400 million in 2001. The suspension will give Globalstar enough cash to fund operations into 2002 and provide its partners with time to implement new marketing initiatives. Globalstar, San Jose, Calif., will continue to meet obligations to its employees, customers and trade suppliers, and believes it has sufficient cash to do so on a continuing basis. The company had $195 million in cash as of Dec. 31. Chairman and Chief Executive Bernard Schwartz said Globalstar doesn't expect to lay off any employees and that the company will expand customer service while its partners revamp their marketing efforts. "We're buying time here to add the kind of resources we think are necessary to turn this thing around," he said. Globalstar also said it has hired the Blackstone Group as its financial adviser to assist the company in restructuring its debt and in pursuing strategic alternatives. Fallout for Loral, Qualcomm Globalstar failed to make the $45 million interest and principal payments due Monday on its Loral Space & Communications Ltd. credit facility and under its vendor and financing agreements with Loral and Qualcomm Inc. Loral, a New York-based communications company that is Globalstar's biggest shareholder, plans to take a one-time charge in the fourth quarter related to a write-down of its Globalstar investment, which totaled about $1.3 billion as of Dec. 31. Loral's investment includes about 39% of Globalstar's equity and about 27% of its debt. In November, Loral made good on loan guarantees for Globalstar by putting in place a three-year, $500 million secured-credit facility with Bank of America and other lenders. The deal allowed Loral to purchase an earlier credit line under which the full amount had been borrowed by Globalstar, removing the threat of Loral having to immediately repay the $500 million in guaranteed loans. Loral on Tuesday said Globalstar's actions will relieve the venture's partners from having to provide additional funding to Globalstar this year. However, the actions will reduce Loral's cash receipts from Globalstar by $140 million in 2001. Loral, which ended 2000 with more than $440 million in cash and available credit, plans to continue its current investments. Meanwhile, San Diego-based Qualcomm said it is "evaluating the effects" of Globalstar's announcement. The mobile-phone equipment maker expects to reserve a "significant portion" of its $610 million in Globalstar-related assets, and "remains comfortable" with analysts' estimates for pro-forma earnings of 28 cents a share for the quarter. Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved.