Anyone think there is still a shorting opportunity left in IRID at $10+?
quicken.excite.com
May 14, 1999/FOOLWIRE/ -- Investors got rid of shares of Iridium World Communications (Nasdaq: IRID) today, sending the global satellite communication company's stock down $4 1/16 to $10 7/16. Late yesterday, the company said it hired Donaldson, Lufkin & Jenrette to help it restructure its debt and reduce its financing costs. Additionally, Iridium does not expect to meet the amended covenants for an $800 million bank credit facility, which required the firm to have at least 27,000 subscribers to its namesake World Satellite Service this month. Under the original covenants, the company was supposed to have that number of subscribers by March; it ended up with a little more than 10,000, growing subscribers by about half the monthly rate lenders expected through the first three months of this year. Keeping that growth rate steady for the rest of the year, Iridium will miss the additional lending covenants of 88,000 World Satellite subscribers by June 30 and 173,000 subscribers by September 30 by 60% and 30%, respectively. |
