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To: kech who wrote (2192)	6/13/2002 7:52:15 AM
From: kech	Read Replies (1) \| Respond to of 2737

So the covenant that is a problem is this one: In addition, White commented on the requirements of the Total Debt to Total Capitalization covenant contained within its vendor financing agreements as measured on January 1, 2004. And is this one a problem just because the stock price capitalization is so low? That seems very odd.

To: kech who wrote (2192)	6/13/2002 11:08:00 AM
From: pcstel	Read Replies (1) \| Respond to of 2737

to meet this particular covenant we either will need to refinance the indebtedness, obtain a waiver of the covenant from our lenders, or raise $225 million in additional capital to pay down indebtedness, Seems like our major vendor understands the need for "financial flexibility" in these "uncertain market conditions". "Lucent said it continues to target a return to profitability and positive cash flow during fiscal 2003. The company said it continues to have sufficient liquidity to fund its operations and has no outstanding balance on its credit facility. It said some covenants of the credit facility have been amended to provide additional flexibility in the uncertain market. " biz.yahoo.com PCSTEL