Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Nancy Haft who wrote (279)	4/13/1999 2:49:00 PM
From: Jeff Vayda	Read Replies (1) \| Respond to of 2737

Did everyone miss this in the 10-k? I was just reviewing it: From page 45 of the 10-K/405A NOTE 14. SUBSEQUENT EVENTS a) On February 15, 1999, Inversiones communicated to the Company that it had incurred an Event of Default as a result of its failure to repay a US$ 20.3 million short-term Working Capital Loan plus interest accrued thereon granted on June 24, 1998 (Note 8) and noncompliance with certain loan covenants. At the time of granting the loan, Inversiones subscribed to a capital increase and reserved its right to capitalize the loan, an option that, in addition to other potential actions to obtain repayment, is still open. Similarly, on February 15, 1999, Leap Wireless International, Inc. informed both the Company and Telex-Chile S.A. that the former has incurred an Event of Default with respect to the Deferred Payment Agreement, as a result of which the amount of US$ 14.7 million plus interest accrued thereon is due and payable. Telex-Chile S.A. is guarantor of 50% of this amount. As in the previous case, the creditor has an option to capitalize this debt or to pursue payment through other means. b) Subsequently on March 2, 1999, Leap Wireless International, Inc. and Inversiones indicated their withdrawal of the above-mentioned communications reserving the right to notify the defaults again in the future. On March 16, 1999, Leap Wireless International, Inc. and Inversiones communicated defaults on the short-term Working Capital Loan of US$ 20.3 million plus interest accrued thereon and the Deferred Payment Agreement of US$ 14.7 million plus interest accrued thereon on the same terms as expressed above. In the report, wording has LWIN taking over Chilean assets in the event of a loan default. (See Previous post) Jeff Vayda

To: Nancy Haft who wrote (279)	4/13/1999 8:08:00 PM
From: straight life	Read Replies (1) \| Respond to of 2737

Chile stocks rise on electric sector, telecom CTC SANTIAGO, April 13 (Reuters) - Chilean stocks ended higher on Tuesday on gains in the high profile electric sector and benchmark Cia. de Telecomunicaciones de Chile (CTC) (NYSE:CTC - news) , traders said. The IPSA (^IPSA - news) index of the leading stocks rose 0.77 percent to end at 124.95 points and the broader IGPA (^IGPA - news) gauge added 0.44 percent to end at 4392.93 points. The ADRIAN (^ADRIAN - news) index, which reflects the local share prices of all Chilean companies with American Depositary Receipts, moved up 0.47 percent to 1032.03 points. In the electric sector, Latin American's largest private electric holding, Enersis (NYSE:ENI - news), advanced 0.66 percent to 232.02 pesos, and its power producing unit, Endesa- Chile (NYSE:EOC - news), gained 0.63 percent at 239.50 pesos on anticipation that Spanish utility Endesa (NYSE:ELE - news) would launch a tender offer to buy part of the Chilean generator, traders said. Confirming the speculation, shortly after the market closed, Enersis, majority owned by Endesa-Spain, said it would offer to buy 29.7 percent of Endesa-Chile at 305 pesos per share. Enersis also said it would ask shareholders to approve a $1 billion capital increase. Enersis' offer could compete with one expected one by U.S.- based Duke Energy Corp. (NYSE:DUK - news), which intends to launch a $2.1 billion tender offer for 51 percent of the generator at 250 pesos per share. In the telecommunications sector, CTC's B series jumped 4.69 percent to 2,010 pesos and its A series rose 1.46 percent to 3,125 pesos because its prices looked attractive, traders said. Also in the telecom sector, but on the down side, Telex Chile (NYSE:TL - news) plunged 13.24 percent to 295 pesos because the company still has not reached a complete agreement with creditor banks to end its long-standing financial problems, traders said. Leap Wireless International, Inc. (Nasdaq:LWIN - news) on Tuesday said it will double its ownership in Chilesat Telefonia Personal SA to 100 percent for $50 million. It will buy the stake from Telex and its affiliate, Chilesat SA. Forty-six stocks rose, 35 fell and 20 ended unchanged. Volume was low at $18.5 million, up from Monday's $11.4 million. The peso ended stronger at 481.30/481.60 per dollar compared with the previous session's 482.50/482.80 on an inflow of dollars and expected inflows in the future from a tender offer for Endesa-Chile and a sale of part of Chile's Chilquinta Energia SA (Enerquinta) electric distributor, dealers said. Southern California's Sempra Energy (NYSE:SRE - news) and Public Service Enterprise Group (NYSE:PEG - news), based in New Jersey, said on Tuesday they will jointly buy 90 percent of Enerquinta for $830 million. --------------------------------------------------------------------------------