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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (25289)	10/12/2002 4:56:37 PM
From: crm114	Read Replies (1) \| Respond to of 29987

If QUALCOMM paid $300 million for the assets... Maurice, that could work out fine. With the QCOM and LOR debt claims equitably subordinated (as they certainly should be if one of the controlling partners who ran this thing into the ground expects to get the salvage rights at a bargain price), that works out to 20 cents on the dollar for the $1.5 billion in senior notes. It's a bargain for QCOM, and it provides a good, though not great, capital gain to investors who have bought the senior notes in the last two years. If on the other hand QCOM expects to pay the bulk of that $300 million to itself and LOR, then I think you can expect the senior noteholders to be heard from. Remember, LOR was ready to surrender 25% of its claim to get some protection from liability, and under that same plan QCOM could have done the same (though QCOM's intention is unknown). You don't buy that kind of insurance if you don't think you have some exposure. CRM