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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (375)	11/22/2002 6:17:43 PM
From: pcstel	Respond to of 3386

We should know soon. Good Luck! PCSTEL

To: i-node who wrote (375)	11/23/2002 2:15:10 PM
From: pcstel	Read Replies (1) \| Respond to of 3386

David: One more thing.... I'm expecting now we'll see non-dilutive debt funding, at least for the interim, until the stock price goes back up. We should know soon. You may get your non-dilutive funding. But, that is not necessarily a good thing. If you read the 10-Q it states. "We have also been in discussions with General Motors regarding non-binding term sheets for the deferral of up to $200 million in payment obligations (with approximately half relating to 2003-2004) and exchanging these payments for certain debt and convertible securities" When your investors start restructuring non-debt related payment issues into secure or un-secure debt. Then this can be seen as a sign that they are positioning themselves for a restructuring. XMSR is talking about taking forward payments due GM (which only ~ half is related to short term obligations in 2003, 2004, and the other half due in the years after 2004>) totaling ~200M, and issue debt instruments TODAY in exchange for un-secure payments due years in the future. For an example, you can refer to Globalstar. In early 2000. Qualcomm transferred about 500 million in Accounts Receivable from Globalstar into Vendor Financing Debt! Doing so, Qualcomm moved their exposure to Globalstar from a position which would be classified as an Unsecured Creditor in a BK, to a position of a Unsecured Debt Holder.. Globalstar in effect received 500 million in non-dilutive funding from Qualcomm. However, Qualcomm's exposure went from unsecured creditor, to an unsecured debt holder. So in a successful reorg. Qualcomm will walk away with a nice percentage ownership in a debt free Corporation due to their debt claims. Whereas, if they had been unable to transfer their Accounts Receivable to Vendor Financing. They would have probably received a Big Fat Goose Egg for their 500 million in exposure. Moral to the story: When you investors/partners start moving items which would be classified as non-secure creditor items into debt instruments. They probably know something they aren't telling you! Regards, PCSTEL