Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Henrik who wrote (3569)	4/19/2001 8:09:40 AM
From: jim_p	Respond to of 23153

The first of may aggressive vendor financing deals to go belly up. How much of the $700MM do you think LU will collect in bankruptcy? Lots of others out there like MOT's $1.5B loan to one customer. When the banks refuse to lend to less credit worthy customers, many tech companies like CSCO, MOT, LU, NT, etc.. provided vendor financing in order to maintain their high revenue growth rates at high margins. As the tech bubble unwinds, many of these loans will have to be written off. The failure of Winstar and others to follow will ultimately have a snow ball effect on the sector as the full consequences of the tech bubble begin to surface. I still believe we are in the 2-3rd inning of the tech saga with more inventory write downs and bad debt problems to follow. quotes.freerealtime.com Wireless company Winstar files for bankruptcy, sues equipment supplier Lucent NEW YORK, Apr 18, 2001 (The Canadian Press via COMTEX) -- Winstar Communications Inc. added itself to the growing list of casualties among new-fangled communications carriers, filing for bankruptcy protection Wednesday. The operator of a wireless network that provides high-speed Internet access to office buildings also filed a $10 billion US breach of contract lawsuit Wednesday against Lucent Technologies - two days after Winstar missed a $75 million US debt payment to the ailing equipment maker. Lucent has been one of Winstar's main suppliers and lenders. The bankruptcy petition, filed in U.S. Bankruptcy Court in Delaware, reports that Winstar had about $5 billion US in outstanding debts at the end of February. It owed $700 million to Lucent. Jim