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To: Lu_Xun who wrote (21183)	1/16/2001 5:28:50 PM
From: Rocket Scientist	Read Replies (2) \| Respond to of 29987

I agree the timing of the announcement is perfectly logical--in fact almost inevitable--considering that there was no way that G* could fund the debt payments to Q, L and the next series of bond coupons. If G had paid L and Q this week, then stiffed the bondholders a few weeks later, the payment very likely would be reversed in C. 11 and would certainly poison the well of any negotiations with the b/h. This way Q and L, which together hold nearly 50% of the debt anyway, can claim to the b/h that all the debt holders are being treated equally. I think the debt will be converted to equity, and rather quickly....the common PI and GSTRF s/h will be diluted by 90%, maybe, but they'll end up with a stake in a debt-free entity with (one hopes) a more rational marketing plan and pricing system, so better off than they are today, anyway.

To: Lu_Xun who wrote (21183)	1/16/2001 5:33:52 PM
From: Lu_Xun	Read Replies (2) \| Respond to of 29987

Just remembered a couple of other things about the CC that I thought were quite weird. According to the PR, GTL is going to default not only on its debt repayments but also on its preferred stock dividend. Yet as one CC participant pointed out, the preferred stock dividend can be -- and has been -- paid in STOCK, not cash. Thus, a default on the preferred stock dividend does absolutely nothing to enhance the cash position of GTL. It merely alienates further the preferred shareholders for no apparent reason. BLS has to be truly desperate. Last point and then I'll shut up for a while and go back to lurking: I was very struck by the sheer brevity of the CC. GTL held a CC and practically no one showed up to listen. There were pitifully few participants. I take this to be a clear indication that Wall Street has completely tuned BLS out and is no longer interested in listening to anything he has to say, at least about GTL. Not a good sign. Lu Xun

To: Lu_Xun who wrote (21183)	1/16/2001 6:00:52 PM
From: Michaelth1	Read Replies (2) \| Respond to of 29987

With respect to the 31,200 subs, it's attrocious that G* couldn't even convert I's subs to G, particularly when I* was footing the bill in many locales. I think, and have thought for some time, that holders of G* common are toast. I still think, however, that the G* system has a chance to flourish. Imo, the 31,200 sub count does NOT prove that sufficient demand doesn't exist for a properly priced (which G* is capable of now and will be even more capable post-restructuring) voice and data system that is actually marketed. For instance, G* should have been giving its phones to potential corporate customers on a trial basis with free minutes. This type of common sense suggestion--along with dozens of others posted on this thread--were seemingly not even explored by the G* management. To date, I do not consider G* as having been marketed to any real extent. Current marketing is more brand awareness than anything else. Pricing still sucks. Data just emerged. Roaming is just coming on-line. Not to mention a second generation, smaller phone would be nice. I find it not so coincidental that, basically, a fully functional G* system is out there for the taking for a "song". No one outside of the partnership, however, probably wants it since any outsider sees G* as a huge failure. Not to mention the obvious problems with the GWs being owned by the SPs and the exclusivity agreements. I see the stock as a failure, but the system can still create massive profits for its owners and operators. G* is a system that still hasn't gotten a chance because of delays (some of which may have been intentional by the SPs, imo) and financing running out. The fact that the system is "out there" is meaningless to me; when those elephants actually try to sell G* service is when I'll be convinced one way or another. Time will tell, but I still think there's a 50-50 chance that in 4 years G* sats will still be active and actually gaining users. The question to me, as it has been for the last 6+ months, is who will profit from that. I've posted in the past who I think that will be (SPs, LOR, Q). The big losers are the common shareholders and any bondholder who has held since the debt was issued (not many, imo) --although the bondholders will likely get equity in the new G. Imo, G, unlike I, will not close its doors until 2002+. The scary part is that if G does actually succeed, it will be quite painful for past shareholders who lost a ton on the stock to have to see its success. For those who believe in G* as a system still, the best bet probably Loral since it will likely own 33%+ of the new G* as well as parts of some of the potentially most lucrative SPs (Brazil, Mexico and Canada).