From: GBurch1@aol.com
Date: Sat Aug 14 1999 - 16:04:45 MDT
http://adex3.flycast.com/server/socket/127.0.0.1:2800/iframe/SpacerComdailyspa
cenews/SpaceLeader/390
Washington - August 13, 1999 - Iridium LLC announced today that it is
pursuing a comprehensive financial restructuring through a voluntary Chapter
11 filing in the United States Bankruptcy Court in Delaware.
Nasdaq announced suspension of Iridium trading at 2:04 p.m. with "additional
information requested" from the company. The last sale price was $3.06 giving
the multi billion dollar venture a market capitalization of $60.4 million.
In a written statement by Iridium, the company said, "The major stakeholders
in this restructuring -- banks, bondholders and Iridium's strategic partners
-- have voiced support for this course of action. Iridium believes they will
continue to cooperate during this process.
The statement added that US law allows Iridium to complete its financial
restructuring under an orderly, court-supervised process. Iridium's current
and future customers will not be affected by this action. Adding that there
will be no interruption of Iridium's global service.
"The action is the most efficient way to conclude Iridium's restructuring
negotiations," said John A. Richardson, CEO of Iridium LLC. "We are confident
that Iridium will emerge from this process as a stronger and more vibrant
company in the telecommunications marketplace."
Motorola, Iridium's largest investor and operator of the Iridium system,
expressed strong support for the Iridium business from a financial and
operational perspective, but only on the basis that other major creditors
poneyed up as well for a bailout.
However, Motorola will continue to provide full operational support for
Iridium, the Gateways and all current and future subscribers during the
reorganization process.
In Iridium's official statement, Motorola was quoted as saying; "We are
encouraged by Iridium management's decision to pursue this course for
restructuring the business. Given the progress being made to date to
restructure Iridium's capital structure, we are optimistic that a
restructuring plan can be accomplished within 30 days."
Nippon Iridium Corporation, Iridium's second largest investor, also expressed
its support for today's action: "We continue to believe in the long-term
viability of the Iridium project and are confident that this approach will
greatly strengthen Iridium's financial position and enable the company to
succeed in the marketplace."
Iridium LLC became the world's first global satellite phone and paging
company on November 1, 1998. Its network of 66-low earth orbiting satellites,
combined with existing terrestrial cellular systems, enables customers to
communicate around the globe. Iridium World Communications, Ltd. is the
public investment vehicle of Iridium LLC.
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