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Technology Stocks : Nextwave Telecom Inc. -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (667)	2/3/2002 6:06:54 PM
From: Maurice Winn	Respond to of 1088

<But, I thought that that previous contracts were nullified under Bankruptcy.. Everyone says that is why G* needs to file bankruptcy to get out of the contracts with those greedy service providers who maintain a "steel trap" on the exclusive use of these frequencies. The Govt. owns the spectrum, which has been made available for L/Q's use as a Grant of Use. L/Q then allows GLP to use the license, which is in turn granted to Globalstar USA. If GUSA files bankruptcy, then by your measure. GUSA now owns the regulatory approval.. Not GLP nor L/Q Partnership because the "Grant of Use" has been implied to be their main asset.> PCSTEL, I think you're right [about forfeiture of spectrum rights and ditching of contracts] if there is a liquidation bankruptcy. But there are also bankruptcies where the company doesn't go out of business, but continues in operation, but with a creditor and judge-approved restructuring of the business and liabilities. A single creditor [even if they are the FCC] can't demand asset liquidation and cessation of operations even if a new company is formed to continue business. That's my understanding anyway. Maybe wrong, because I really don't have much clue. The reason for that is to protect the interests of the public, employees and others from selfish decisions of a single creditor causing undue upheaval. I suppose that's why the negotiations have been so tortuous and torturous - there isn't a liquidation and carving up of the assets so much as a renegotiation among interested parties on who will own what in a revamped or new company's operations. Globalstar LP has a set of contracts which will remain in force until the restructuring is agreed by creditors and a judge [including the chain of spectrum control up to the FCC] or until it's declared to be game over and the business ceases operations and assets are liquidated and spectrum control reverts to the last one standing up the chain of control ending at the FCC. If NextWave gets the money, I bet that Allen Salmasi would love to make Globalstar work as it was supposed to [in a business sense as well as technological]. He originally did Omninet [OmniTRACS] which funded CDMA developmet. I feel a bit smug that way back in 1996 [when nearly everyone was saying that the C-Block was absurdly overpriced by the bidders] and NextWave went bankrupt, I commented that I wouldn't be surprised if NextWave ended up having to pay MORE than they originally bid in a reauction. It's fun being right [a shame I was right years ago that Globalstar wouldn't succeed with their business plan - but wrong that I thought they'd actually do something such as slash minute prices when they saw failure writ large]. I still shake my head in disbelief that they destroyed great prospects. Even more now that it is 2 years since the first evidence of marketing failure was obvious as the service wasn't selling and STILL nothing has been done to resolve the situation [sure there have been meetings galore, but no solution offered]. So it went, Mqurice