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

To: Valueman who wrote (2602)	1/20/1999 10:52:00 PM
From: DAPerez	Read Replies (1) \| Respond to of 29987

Talk about frustration! Being long with this co. is like trying to solve rubik's cube in the dark with one hand. I'm sure I'll be back in again at some time (hopefully soon) but I just grew weary of watching so many other companies moving onward and upward that I could stand it no longer. The quality of the discussion on this thread is by far and away the most incisive and informed of any I have been involved with on SI. I remember the day, I was in my room at the Willard in D.C., when I heard the news of that fateful launch, and yet I still, on the darkest of days for G* felt that BS could turn this thing around. Unfortunately, four months later, I cannot say I hold this same view of the future. Valueman is on the money when he vents his frustration of current events. Why not a two-track launch schedule. Hell, why not even a launch schedule like we had in the old days (pre-Zenit crash.) Sorry to carry on but I just thought that this E-ticket ride would have had at least a chance of a brass ring at the end, but all Ive been able to glimpse is an ever-increasing amount of tarnish on each and every sat that sits here on Terra Firma, awaiting some rediculous TSA draft! Enough... Can't stop watching, but just had to park on the sidelines for the time being. Beast of Luck to All. Kindest Regards, DAP

To: Valueman who wrote (2602)	1/21/1999 10:28:00 AM
From: Jeff Vayda	Respond to of 29987

Vman: some interesting numbers here for you. I noticed you 'SCREAM' pretty loud over on this thread. (only having a stake in Loral) Keep it up, looks like the yelling was productive for Loral yesterday.(ggg) Globalstar Nears Closing On $350 Million Financing To Operate Until This Fall HONOLULU - A $350 million financing is expected to close this week to give Globalstar L.P. [GSTRF] enough cash to last into the third quarter. At a cash burn rate of $37 million a week, Globalstar only has enough money on hand to operate for another two months without this week's financing, we're told. The cash shortage for Globalstar was touched off by the loss of 12 satellites in a Zenit launch failure last September that prevented the fledgling global, mobile satellite communications provider from rolling out revenue-generating service early this year, as planned. To tide itself over, Globalstar has been tapping into a $250 million revolving line of credit that had been arranged prior to the launch failure, Globalstar president Doug Dwyre told us at the annual Pacific Telecommunications Conference. Loral Corp. [LOR], Globalstar's deep-pocketed 42 percent owner, showed its confidence in the proposed system by investing an additional $150 million as part of this week's financing package. Globalstar's losses have been offset for Loral so far by strong profits from Loral Skynet and Space Systems/Loral, a Loral executive told us. Dwyre hinted that without Loral's unflagging financial support, Globalstar could have been in dire straits. Globalstar is one of four Loral business units that chairman Bernard Schwartz has created to capitalize on growing demand for satellite manufacturing and communications services. They are: satellite manufacturer Space Systems/Loral, worldwide mobile telephony provider Globalstar, satellite capacity leasing unit Loral Skynet and data services provider Loral Orion. Globalstar's losses have been offset for Loral so far by strong profits from Loral Skynet and Space Systems/Loral, a Loral executive told us. Globalstar officials are hopeful a series of successful launches and satellite deployments during the next several months will restore Wall Street confidence in the system and allow improved financing terms to be obtained in the next round, Dwyre said. However, the company has been waiting since October to launch more satellites aboard the Russian-made Soyuz rocket. The hold-up is due to negotiations on a new launch agreement between U.S., Russian and Kazakhstan officials. Talks on the so-called Technical Safeguard Agreement have dragged out for nearly five months and still are continuing, although we understand that the U.S. and Russia have tentatively signed off their parts of the agreement. Once the pact is in place, Globalstar will need at least a month to prepare for the Soyuz launch. Globalstar is slated to use six Soyuz rockets to carry a total of 24 satellites. It also has contracts for an Arianespace Inc. Ariane 4 rocket to lift six birds in September, and recently named Boeing Co.'s [BA] Delta II as a launch vehicle for 28 of its satellites. Four Globalstar birds would be carried aboard each of seven different Delta II launches, said Cathy Crockett of Loral. Three launch contracts remain with the Zenit rocket that may never be used, Dwyre said. Three additional launches with other providers beyond the number expected to be needed also are under contract. Those supplemental launch contracts can be canceled, with a penalty, but they offer Globalstar the flexibility to alter its launch plans if any of the launch vehicles that it plans to use suffer problems, he added. Globalstar already has eight fully functioning satellites in low-Earth orbit. Ultimately, 48 satellites are expected to operate, divided among eight planes. As the constellation is deployed, Globalstar officials expect to begin commercial service with 32 birds - four in each plane. The system will be expanded to 40 birds, with 5 birds in each plane and have 48 satellites divided equally between the eight planes when it is finished. (Phillips Telecom)