To: Theophile who wrote (12442 ) 7/4/2001 10:54:53 AM From: JMD Read Replies (1) | Respond to Martin, re: "Is it possible we are witnessing the first pause in negotiations, not the final word?" I think you can take that to the bank. Normally, bankruptcies of the Globalstar variety are precisely orchestrated events: the new equity folks are standing by while the hatchet falls on the chicken's neck zapping current equity holders (almost always 100%) and dinging current debt holders according to whatever terms the new equity has worked out with them (writing off 70% of the debt and getting warrants or whatever). Of course this event follows months of big time negotiations as the new equity attempts to persuade old debt that they need to take a big hit or face the possibility of losing it all (cause the equity guys won't stick in any dough). Well, sounds like Dr. IJ just told the debt holders to pound sand. His due diligence squad reported that "expenses would be much greater than anticipated blah, blah, blah" and therefore the Q was packing their bags. Well, golly, how do you reduce those nasty expenses? Cut the carrying cost on the debt, get a waiver of interest, a forebearance, whack out the IOU's themselves--whatever the methodology, the end result is the same: more pain for the debt.
