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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (27445)	4/14/1999 9:23:00 AM
From: kathyh	Respond to of 90042

Noticed this on the LWIN thread... any thoughts?? To: Nancy Haft (279 ) From: Jeff Vayda Tuesday, Apr 13 1999 2:48PM ET Reply # of 285 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