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'Fresh start' puts leap back in black: Some think the flat rate model still has potential.

Publication: San Diego Business Journal
Publication Date: 29-NOV-04
Format: Online - approximately 857 words
Delivery: Immediate Online Access

Article Excerpt
Thanks to a technique called "fresh start accounting," adopted following Chapter 11 bankruptcy reorganization, Leap Wireless International Corp. converted its shareholders" equity of minus $893 million at the end of 2003 to plus $1.5 billion at the end of September.

The San Diego-based spinoff of Qualcomm Inc., that filed for bankruptcy in April 2003 and wiped out all shareholders, put on a brave face as it revealed its new and improved financial condition at the end of its third quarter.

"Our performance continues to be substantially ahead of where we were a year ago," said CEO Bill Freeman. "We've emerged from our restructuring with a strong balance sheet and leveraged ratios that are among the lowest in the industry."

Perhaps, but how long Leap's branded carrier service,...

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