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

To: Rocket Scientist who wrote (21192)	1/16/2001 6:43:19 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 29987

The bond underwriter usually picks the trustee. I haven't seen the bond prospectus, so I don't know if all the bonds use the same trustee. There may be a grace period, but that depends on the terms of the prospectus. Being small holders, most of us can't do much except hope that the trustee acts in our interest. I hope, additionally, that there may be more than a few institutions holding these bonds, who get together and take legal action to protect their holdings. A court cannot give one set of bondholders much different relief from the others, unless individual holders waive their rights under the class of debtors. This pending default is not as bad as it might seem. The reason is that the technology and the hardware in operation are just too valuable to write off. One of the weak points, however, appears to be poor quality management and policy making by the gateway owners/operators. As long as IJ continues to have some involvement (and that $610 million write off taken by QCOM seems a good way for him to continue being involved), I will sleep somewhat easier at night. Art