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

To: A.L. Reagan who wrote (21764)	2/2/2001 12:56:31 PM
From: pcstel	Read Replies (3) \| Respond to of 29987

AL Regan: "Pcstel, this is a good discussion you have started, but my read of the bond indenture is that the rights of the holders of the Series A and B senior notes (these are the bonds, not be confused with other senior debt) to force bankruptcy is independent of the rights to force BK of other holders of senior debt." First of all.. The question is not. Can they force a BK Petition.. But, can it be rescinded? The reference to the Series A and B senior notes was a "cut and paste" from an IRIDIUM BOND PROSPECTUS.. The Globlastar Bonds state this: "If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the outstanding Notes may declare the principal of and accrued but unpaid interest and Liquidated Damages (if any) on all the Notes to be due and payable. Upon such a declaration, such principal, interest and Liquidated Damages shall be due and payable immediately. If an Event of Default relating to certain events of bankruptcy, insolvency or reorganization of either Issuer occurs and is continuing, the principal of and interest and Liquidated Damages (if any) on all the Notes will ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders of the Notes. ***Under certain circumstances, the Holders of a majority in principal amount of the outstanding Notes may rescind any such acceleration with respect to the Notes and its consequences."***" In Gloabalstar's BOND PROSPECTUS.. It states that " the Holders of a majority in principal amount of the outstanding Notes may rescind " The IRIDIUM BOND PROSPECTUS stated "Under certain circumstances, the Holders of a majority in principal amount of the Series A Notes or Series B Notes** , as the case may be, then outstanding may rescind " There is a BIG DIFFERENCE between the two... IMO.. PCSTEL