Frank...that Admiral policy has already been whittled down some $2.3MM by the class action suit payment....They only have another $2.7 MM to pay out on the 05-06 policy. They won't be liable for any more after that, at least that is how the doc reads.
At the bottom of page 10 and all of page 11 basically states that because GTEM lied about any on going investigation, its insurance from Carolina will be completely rescinded. From the insurance document:
"Given the thee prior letters by
thc SEC coupled with the Globetel meeting with the SEC on May 17, 2006, it is difficult to believe that any of Globetel's management was not awaie of the SEC investigation prior to the Policy's inception. Consequently, should Globetel or its dirctors and officers seek coverage under the
2006-07 Policy, Carolina expressly reserves its right to rescind the 2006-07 Policy."
How many other Insurance carriers will think about insuring them now? If any do, the premiums will be WAY up there...how will GTEM PAY for THEM? More Shares...maybe?
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