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

To: Maurice Winn who wrote (21384)	1/21/2001 7:48:56 PM
From: rhkohnen	Read Replies (2) \| Respond to of 29987

Excellent post Maurice. The only problem is if QCOM takes over the whole thing, then they will be in competition with the Wireless companies of the world. As you know, it is these wireless service providers who market QCOM phones. Such a move by Qcom would jeopardize their core business, IMO. It is better for QCOM to be a minority owner, but provide all of the financing needed to make the operation a go. G* is the conduit central to QCOM's future plans for world wireless domination. Gilder pointed out a year ago the vision of notebook computers being able to communicate, via wireless, from anywhere in the world to other computers and the internet. IJ not too long ago also mention a similar vision. QCOM wins big just through the sale of it's equipment if G* succeeds. So I agree with everything yo said about QCOM coming to the rescue, just that it is not in QCOM's best interest to take ownership. I don't think it has to come to this anyway. I was listening to the CC, and Blackstones main objective is to develop a business plan. They are to work closely with the SPs to evaluate their abilities to achieve their sales targets. Blackstone is also to look at the MOU charges and make recommendation regarding cost plans. Hopefully they read you previous posts.<GG> The business plan is to also address debt restructuring. Part of a BK restructuring is to present a new business plan for payment of all debt. This is to be accomplished within 6 weeks or the beginning of March. The plan is to be presented to the debt and equity holders, I imagine for a vote. If accepted, G* is restructured and G* is debt free for a time period without going to court QCOM does not have to put any money in, and it is business as usual. If not accepted by a few, G* can buy the dissenters out with it's cash on hand, and through QCOM or SP finance a debt free G* into 2002. If rejected by a large amount, then the courts will evaluate the new business plan and dictate how much the bondholders who want out get. From various readings it starts at $0.50 on the dollar and is negotiated. The bondholders could lose more in court. The business plan also has to be accepted by the SPs. Since G* is restructuring, new agreements can be made. In the Dec 31, 1999 10K report, GLP finance the gateways, FATs, and handsets to the tune of US$231 million. I have not heard to the SPs repaying this money, except for the US$50+ million in September, which might be the interest and royalty charges for 2000. I don't think the SPs own the Gateways. GLP could take them and the licenses over. Is this an ace up BLS's sleeve in dealing with VOD? I like one of your previous ideas, which is to have Sprint PCS replace Vod if they don't play ball. Neither LOR nor QCOM are in the business of selling commercially. Sprint is a natural. With the burden of debt postponed or out of the way and VOD rejecting the business plan, Sprint could slide right in. One more note. <<There is also the small matter of anti-trust laws in the USA [see Microsoft's problems in this regard], protection of consumers and a reluctance to see monopolies avoiding competition. So Vodafone won't be able to mess too much with consumers and abuse their Globalstar gateway monopoly.>> This is an important fact that makes a VOD conspiracy realistic. Best regards Bob