To: trainleaving who wrote (13163 ) 8/5/2001 12:25:59 AM From: Sir Francis Drake Read Replies (1) | Respond to trainleaving - I don't mind being challenged - as a matter of fact I welcome it in the interest of thorough DD. In this particular case, though, "Patches07" from RB seems not to have read my post in its entirety. He points out that some of the $3.7 bln is offset by current liabilities, therefore in effect, the net cash is closer to $400 mln. Well, nowhere do I claim that the $3.7 bln has no current liabilities outstanding against it. As a matter of fact, earlier in my post, I advised taking all operating costs, interest payments and cap-ex out. If there are liabilities that need to be satisfied, then that falls to the debit side of the ledger. However, I'm not sure about the exact amount of current liablities, I'll wait to get the exact numbers. If you want to get technical about it, you can say, that if the liabilities are due within a year, you classify them as "current" - but that also means that GX has whatever time is left until the liability has to be satisfied... that is, if they come up with the money without touching the $3.7 billion, well, you are still left with $3.7 bln. Regardless, the point is that ultimately, you take ALL expenses and see how that matches with the liquid assets to see what kind of gap you are left with. I merely pointed out that looking at the total numbers, it looks like GX may very well elect to dilute shareholder equity to insure the survival of their business.
