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Technology Stocks : Leap Wireless International (LWIN) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (2349)	7/3/2002 12:56:30 PM
From: A.L. Reagan	Read Replies (1) \| Respond to of 2737

I believe the loan covenants require LU to hold a controlling interest in the vendor debt. If you think about it. If you were LU. Would you sell away your ability to control your future ability to make amendments to the facilities. Now that doesn't seem to make sense. If you were LU, you would want paper that was merchantable, as well as collaterizeable for your own debt - which no LU lender would ever accept if the VF asset could only be held by LU. The party that might have the most vested interest in a covenant that restricted LU's ability to transfer the loans would seem to be LWIN - as another holder mightn't be so accomodating to make covenant revisions. In the more guts than brains category bought a whack of LWIN this morning at $.74.

To: pcstel who wrote (2349)	7/3/2002 1:05:52 PM
From: Rono	Respond to of 2737

If you were LU. Would you sell away your ability to control your future ability to make amendments to the facilities. If I were LU, I would do what's best for me including selling the vender financing debt for the highest dollar if I thought LEAP was headed down the gurgler. Could be LU just needs the money?? It makes no sense to me why LU would agree to such a restrictive covenant such as holding controlling interest when they could presumably just choose not to sell. Maybe this was a LEAP requirement, I don't know, but that would seem unlikely when apparently LU was holding the hammer. Ron