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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: John Lacelle who wrote (12449)	4/22/2001 9:51:05 AM
From: Paul Smith	Read Replies (1) \| Respond to of 12468

I suspect you are not an expert in this area. Neither am I. Please explain how Winstar can come out of bankruptcy without the current equity being worthless. I don't think they ever get out of bankruptcy as an independent company but if they do, I would think that the massive debt need to be converted to equity. More likely outcome is a sale of the company to give debt holders only a fraction of their investment back and equity holders zero. Just my opinion, I might be wrong.

To: John Lacelle who wrote (12449)	4/22/2001 2:40:43 PM
From: Ken Muller	Respond to of 12468

John: ". Its down from 30 to about 4 but how can this company go under? It can't." Yes it can. If the state refuses to allow electricity rates to rise enough to allow PG and E to make a profit, the assets will be sold. In that case, the company is history. Bondholders are not Good Samaritans In WCII's case, they had no such price limitation. The market simply could not provide enough revenue for WCII services to be profitable. Because of that, I believe WCII assets will be liquidated.