Do you think Iridium's LEO satellites are going away? Cobalt, based on your logic that there are major investors and lenders involved in this Chapter 11 case, and therefore Iridium must continue, I suppose that all Chapter 11 cases must therefore conclude with a successful reorganization, as opposed to an asset-sale liquidation.
Unless MOT is just blowing smoke, they've made it pretty clear that they aren't the savior of last resort to operate Iridium as a going-concern. Chase Manhattan isn't going to operate the system either -- they will go after MOT on the guarantees.
As others have observed, Iridium has some valuable assets. But, if you've read all the technical analyses over the past two years from Rocket Scientist and others, the birds themselves are of questionable utility.
So, my prediction is that regardless of whether the case is ultimately converted to Chapter 7, Iridium as an integrated system will not survive, its assets will be sold piecemeal, and Chase, etc. will sue MOT.
Cobalt, what's your alternate scenario? Who will operate the system? (It won't be MOT). If the system doesn't stay intact, where is the value in the birds without the ground assets? Have I missed an "adaptive reuse" for the birds (other than Star Wars target practice)? Do tell.
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