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

To: Goodboy who wrote (4588)	5/13/1999 7:06:00 PM
From: djane	Read Replies (1) \| Respond to of 29987

Iridium hires DLJ for advice on debt restructuring Thursday May 13, 6:22 pm Eastern Time WASHINGTON, May 13 (Reuters) - Global satellite telephone company Iridium LLC (IRID - news) said Thursday it had hired investment bank Donaldson Lufkin & Jenrette to advise it onrestructuring its debt and reducing its financing costs. The company, which operates 66 satellites that allow customers to make wireless telephone calls almost anywhere in the world, is in talks with the lenders of its $800 million credit facility. Iridium has had problems meeting revenue and subscriber growth targets that were conditions of its loans. It has said it no longer expects to have 27,000 satellite subscribers by May 31, for example. At the end of March, Iridium had 10,294 customers. The lenders have granted Iridium temporary waivers of the loan covenants. The company expects to complete the negotiations by the end of the month. DLJ has extensive satellite financing experience, Iridium said. A day earlier, Iridium named senior vice president Leo Mondale to the post of chief financial officer. The company is still looking for a new chief executive since CEO Edward Staiano left in April due to disagreements with the board over strategy. Washington-based Iridium lost $505.4 million in the first quarter, 42 percent more than in the year-earlier period, on revenues of just $1.45 million. Results have been hurt by slow production and distribution of phones by suppliers, quality problems with certain handsets, and problems with training and equipping enough salespeople. Iridium, a consortium formed by telecommunications and industrial companies, was founded by Motorola Inc. (MOT - news), which still owns a 20 percent stake. Iridium shares rose 25 cents, to $14.50, in trade Thursday on the Nasdaq stock exchange. More Quotes and News: Iridium World Communications Ltd (Nasdaq:IRID - news) Motorola Inc (NYSE:MOT - news) Related News Categories: computers, options, telecom, US Market News Help Copyright © 1999 Reuters Limited.

To: Goodboy who wrote (4588)	5/13/1999 9:08:00 PM
From: Andmoreagain	Read Replies (1) \| Respond to of 29987

Goodboy: First, let me credit you with being well-informed, as well as correct, on the Iridium restructuring story long before it happened. How you arrived at your conclusions is not important, but your information was quite helpful. Some time ago you stated that Iridium's restructuring, when it was announced, would set up a buying opportunity in Globalstar, probably in the summer. Do you still feel this way? I ask because Globalstar is creeping up on a breakout, and might not fall to the level you suggested. Comments?