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

To: Jon Koplik who wrote (2571)	11/13/2002 8:32:51 AM
From: Jon Koplik	Respond to of 2737

Leap Wireless loss narrows, defaults credit facility Reuters, 11.13.02, 8:11 AM ET SAN DIEGO, Nov 13 (Reuters) - Leap Wireless International Inc. (nasdaq: LWIN - news - people), which could soon face delisting from the Nasdaq stock market, on Wednesday said its third-quarter net loss narrowed, and a default of a credit facility could force it into bankruptcy. The company, known for its affordable unlimited local wireless service, also said that its subsidiary Cricket Communications Inc. had total debt of $2.16 billion as of Sept. 30, and was in default of its secured vendor credit facilities. The company said it has stopped paying interest and fees under the facilities, and the lenders could accelerate loans or foreclose on Leap's assets. Leap said if the lenders accelerate the loans, its note holders could declare their notes payable, and the company would likely file for Chapter 11 bankruptcy. San Diego-based Leap said its net loss for the quarter was $143.0 million, or $3.18 a share, boosted by a one-time gain for the sale of its interest in a telecom company, compared with a loss of $160.7 million, or $4.43 a share, last year. Excluding some items, Leap reported a third-quarter loss of $155.6 million, or $3.46 a share. Copyright 2002, Reuters News Service.

To: Jon Koplik who wrote (2571)	11/13/2002 8:34:38 AM
From: Lance Bredvold	Read Replies (2) \| Respond to of 2737

Thanks Jon. Nice formatting. I read through the written stuff and was aggrieved by the last paragraph before the boiler plate. Sounds like the restructuring is pretty dangerous for us equity holders, don't you think? "Leap has requested a small participation..." sounds end stage and bad. " Because Cricket is currently unable to fully repay the amounts outstanding under its loan facilities and has been unable to raise new funds that would enable it to repay such amounts, there is substantial risk that the stock of the Cricket Companies has no value to Leap. Similarly, if Leap's notes were declared due and payable, the creditors of Leap would have claims in excess of the existing cash and other assets held by Leap. Since Leap is currently unable to fully repay the amounts outstanding under the indenture and has been unable to raise new funds which would enable it to repay such amounts, there would likely be no assets available for distribution to the stockholders of Leap if the obligations under Leap's senior notes and senior discount notes were to be accelerated. While the management of Leap has requested a small equity participation for the Leap common stockholders in a restructuring, there is a substantial risk that Leap's existing stockholders will lose all of the value in their investments in Leap common stock in connection with any restructuring."