Iridium Unsure When It Will File 10Q, Resume Trading
September 27, 1999
Dow Jones Newswires
By SHAWN YOUNG
NEW YORK -- Iridium World Communications Ltd. (IRIQE) doesn't
know when Nasdaq trading will resume for its stock, which has been
halted since the company filed for bankruptcy protection Aug. 13.
The Washington, D.C., satellite wireless phone venture was due to file its
financial report for the second quarter, ended June 30, with the Securities
and Exchange Commission by Aug. 15, but was unable to do so. It must
make the filing, called a 10Q, in order for its stock to trade on Nasdaq.
"We have no news on when the stock is going to trade," said company
spokeswoman Michelle Lyle. "We are not planning to file a 10Q in the
near term."
Iridium is making disclosures required by the bankruptcy court, Lyle said.
The company recently shifted proceedings to U.S. Bankruptcy Court in
Manhattan from Delaware.
Nasdaq can delist a company that fails to file quarterly reports in a timely
manner, said Nasdaq spokesman Wayne Lee, who didn't comment
directly on Iridium.
"A company should not let other events get in the way of making a timely
filing," Lee said.
A company that Nasdaq has delisted might go on to trade on the
over-the-counter bulletin board or the National Quotation Bureau's Pink
Sheets.
Shares of a company that has declared bankruptcy can sometimes
continue to trade on Nasdaq if its filings are up to date. The letter "e" at the
end of Iridium's symbol indicates it is delinquent with its filings.
Iridium said in August it was unable to provide the detailed information
required on a 10Q, but said it expected a charge and a significantly larger
loss in the second quarter than it had in the first, when it lost $505.4
million, or $3.45 a share, on revenue of $1.5 million.
Iridium, a $5 billion project backed chiefly by Motorola Inc. (MOT), filed
for bankruptcy after a drawn-out failure to meet customer and revenue
targets that were among the conditions of its $1.55 billion in bank loans.
The service, which relies on 66 satellites orbiting the Earth, promised to
offer wireless phone service anyplace on earth.
The system is technically impressive, but customers were put off by costs,
marketing failures, and equipment that was bulky, hard to get and difficult
to use.
It is possible that the stock won't trade until after bankruptcy proceedings
are complete. It is unclear what value, if any, the stock will have at that
point.
-By Shawn Young, Dow Jones Newswires; 201-938-5248
shawn.young@dowjones.com
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