Replies to post #142680 on World Surveillance Group Inc (fka WSGI)

[Madmonks]

I'd also like to clarify a few things.

I was telling Warp that I thought he made a good decision about dumping his GSAT shares purely from an investment-risk standpoint. That doesn't mean Globalstar won't be wildly successful. It just means I wouldn't invest given the risks. If the company fails, it's true that the satellite network would probably survive under different ownership, but common shareholders would likely be out of luck.

As for the GTC agreements, my guess is that the agreements may need to be renegotiated (I would speculate that it's up to a bankruptcy judge). But if these appliqués are as important as they appear, then I would think new ownership would want to offer GTC an attractive enough offer to remain a partner.

Indy, ever since you became a shareholder and started posting on this board, you've been a realist. That's probably the characteristic I appreciate most about you. And it's the characteristic most lacking among management. I think Clark, Estrella and Phipps are all guilty of misleading shareholders about WSGI/GTC's plans, strategy and time-tables. No excuses. Hulo is on the Board and should have been advising them about the pitfalls of DoD procurement. I'm very happy that Clark is gone. Bocchichio is a huge upgrade at the Chairman position IMO.

When you say there was "buzz" about the BiB in DC last week, what exactly do you mean? I'm curious about where this "buzz" was coming from.

[Renaissance]

"Any speculation whether GTC's agreements would endure past the demise of GlobalStar? Perhaps that is a question for Barb or Ren maybe."

Indy, I feel like I am being baited into an answer.

"Demise" is not exactly a precise term. It could try to avoid bankruptcy with an asset sale, but it would need to have creditor approval. Three or more creditors can force an involuntay bankruptcy and the asset sale would liekly be subject to a clawback provision. Once in bankruptcy, there are too many variables to answer your question here, i.e. type of contract, is there a partial property posessory right (similar to a lease of one floor of an office building), if so what kind of posessory right, etc. Put all of that in the conext of a satllite and I have no clue. These variables determine how far the trustee can go to maximize the return for the creditors. By that I mean how far can the trustee go to strip us of any freebees.

I would not even bother BJ with it. Getting a detailed, correct answer factoring in all variables would likely need to be farmed out to outside counsel and that costs $.

If Globalstar does fall into bankruptcy, I have full confidence in BJ and outside counsel to advocate for our rights. And no I do not mean the same outside counsel that takes forever to write the legend restriction removal letters.