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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: RMiethe who wrote (6088)	5/9/1999 10:09:00 AM
From: Valueman	Read Replies (3) \| Respond to of 10852

Not quite certain that LOR becomes cash poor if with in excess of $820 million, even given a $100 million quarterly burn rate for Globalstar Didn't they mention a $100 million/quarter burn rate for Loral, not G*, on this latest CC? That is where my concern about cash burn came from.

To: RMiethe who wrote (6088)	5/9/1999 7:28:00 PM
From: Thomas	Read Replies (1) \| Respond to of 10852

RMiethe, Valuman is right about the insurance proceeds. I had read over the old Orion bank financing documents very carefully and they were very tightly structured (a strict project financing deal), with the result being that (if I remember correctly) the banks even had the option to take the insurance proceeds as a paydown of the term loan rather than allow the rebuild of a satellite. Of course that old bank deal has been refinanced, but there is no way that any insurance proceeds that were tied to an Orion debt-financed bird would be allowed to leave the Orion cap structure (the financing docs would specifically require that LOSI be named as the beneficiary of the insurance policies). LOSI is highly leveraged enough as it is. Here's hoping for a resolution of the Eutelsat issue and a launch of Orion 3 sometime. . . Cheers, Thomas