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Technology Stocks : (LVLT) - Level 3 Communications -- Ignore unavailable to you. Want to Upgrade?

To: IngotWeTrust who wrote (3019)	7/30/2001 10:47:44 PM
From: flint	Read Replies (1) \| Respond to of 3873

I was thinking of the news last week - Swapping bonds for stocks. LVLT stated they made an "admendment". Like there is a bond holder out there that would rather own stock than bonds. Bottom line they will need to entice at least $500 million in bonds to make a dent into the debt problem. The bond holders will need to be lured with a premium. Plus if you add the impact of dilution I would demand 1.25 shares for every dollar of debt. The existing stock holder just lost 50% of their value. The new stock holders are going to dump and dump fast. When the dust settle I expect to see LVLT at $1.75, and still not out of the woods for BK. As far as someone in Omaha paying $.36 for the bonds. At that price the company could file for bankruptcy, return $.45 to the bond holder. He still made money. In fact the sooner LVLT files for BK the better. I never did understand why everyone felt buying bonds for $.36 is a vote of confidence. Flint