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To: KyrosL who wrote (37770)	5/2/2002 7:54:05 PM
From: ajtj99	Read Replies (1) \| Respond to of 209892

KryosL, bond holders have provisions that secure their positions. Common benchmarks beyond the normal secured assets as well as cash flow, enterprise value, and of course, the prompt payment of the debt. These are especially common with junk bonds. The stock price impacts the enterprise value. Normally when there is a problem with the covenants, there is a period of time where amendments can be made. The company must notify the bond holders and banks if they will be in default of loan covenants, but that period can be a month or more. If there are problems with the loan covenants, often times automatic interest rate adjustments take place. Furthermore, stricter compliance is often initiated. What this ends up doing is putting the company in a death spiral. That's what you'll see happening to WCOM. They are on the fast lane to Chapter 11, and if you are in denial you can be like the same people who believed Dynergy was going to buy Enron and K-Mart was going to stave off bankruptcy. All I can say is make sure you use stops on your WCOM. Believe what you want about the price drop in the stock. Just don't get burned.