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Technology Stocks : CAWS - Wireless Cable (New and Improved) -- Ignore unavailable to you. Want to Upgrade?

To: Zorro who wrote (5434)	7/20/1998 7:52:00 PM
From: webpilot	Read Replies (2) \| Respond to of 5812

Zorro, Van, I came across the following in a credit rating article for another company, but perhaps the same applies to CAWS: "The credit facility is secured primarily by a first priority lien on all the assets of the company and its guarantors, including its material subsidiaries. While broadcasting licenses cannot be used as collateral, Standard & Poor's believes that the security provided in the form of broadcasting subsidiary assets is significant." Where is states, broadcasting licenses cannot be used as collateral, etc., do you think that this is a banking regulation, or is it illegal to borrow money against licenses that are issued by the Federal Government, or the FCC? This is very interesting, they may have pledged all the assets but that does not include the licenses. These licenses may be outside the jurisdiction of the bankruptcy court. Perhaps we, the stockholders retain the rights to the licenses. I do not know the answers but it certainly raises some interesting questions. If CAWS cannot pledge the licences, I wouldn't think the bondholders have a claim against them. There is always the possibility that someone did not do their homework.