Stick a fork!!!
IRIDIUM GETS $20 MLN FUNDING COMMITMENT
12/9/99 17:31 (New York)
(The following is a reformatted version of a press release issued by
Iridium LLC.)
Iridium LLC Investors Commit Funding to Ensure Service During Restructuring
Discussions
December 9, 1999-- Iridium LLC announced that it has obtained a funding
commitment of $20 million from current investors led by Motorola. This funding
will be used for ongoing operations while the company seeks to achieve its
financial restructuring. Motorola is seeking broader participation in the $20
million funding commitment from other current investors. Iridium LLC will
request approval of these arrangements in a motion to be filed on December 10,
1999 with the U.S. Bankruptcy Court for the Southern District of New York. The
company will seek an extension of its current cash collateral order, which
expires on December 15, 1999, through February 15, 2000 to accommodate these
arrangements.
"Our existing investors have stepped forward to provide for ongoing
operations, while we continue to have discussions with potential new investors,"
CEO John Richardson said. Discussions with a number of parties have been held
since Iridium filed on August 13, 1999 for relief under Chapter 11. However, no
investment offers have been made.
The Company noted that recent trading in the stock of its public investment
vehicle, Iridium World Communications Limited, does not reflect the reality of
its financial situation. The stock of IWCL was de-listed by NASDAQ on November
19, 1999 and is now trading on the "pink sheets." The company is in a Chapter 11
bankruptcy reorganization proceeding and, based on its debt level in excess of
$4 billion and the legal priorities in bankruptcy, believes that it is highly
unlikely that any reorganization will result in value remaining from the
bankruptcy estate for holders of publicly traded equity. |
