IRID - Iridium World Communications IPO Announced! Message Board

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Technology Stocks : IRID - Iridium World Communications IPO Announced!

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To: Marty Rubin who wrote (1865)	5/28/1999 4:47:00 PM
From: Marty Rubin	Read Replies (2) of 2693

"Lenders Give Iridium Another Extension" Friday May 28 1:39 PM ET Lenders Give Iridium Another Extension NEW YORK (Reuters) - Satellite telecommunications company Iridium World Communications Ltd (Nasdaq:IRID - news). Friday said it received another extension from its lenders, giving it until June 30 to prove it can meet certain customer and revenue targets. Iridium also said it plans to use the next 30 days to get a consensus among its investors and creditors on a plan to restructure its debt. Iridium's Chief Financial Officer Leo Mondale said Thursday the company was aiming for a restructuring rather than declaring bankruptcy. ''This extension allows us to make the important changes in our marketing and distribution strategy, which will help us drive sales,'' Iridium's new Chief Executive John Richardson said in a prepared statement. ''At the same time, we will continue to work with our creditors, Motorola and our other strategic investors to identify the financial strategy required for commercial success,'' Richardson said. Motorola Inc. (NYSE:MOT - news) owns about 18 percent of Iridium and has guaranteed a large portion of the company's debt. The new 30-day extension is the second reprieve Iridium has received. The first two-month extension would have expired Friday. The company would default on its loans if it failed to meet the new deadline. Iridium, which has 66 satellites in its network, recently hired Donaldson, Lufkin & Jenrette to advise it on restructuring its debt and reducing its financing costs. Iridium has struggled to meet the target of 27,000 subscribers required as part of its $800 million credit facility. Iridium had less than 10,300 customers at the end of the first quarter. The company said Thursday it was still not satisfied with its rate of customer growth but declined to provide specific subscriber levels. The company has suffered from problems with its marketing and distribution partners and from a lack of availability of telephone handsets. Iridium said it is working on these issues and expects to see improvement. Iridium, which recently replaced several top executives, also plans to reduce costs internally and cut prices on its products and airtime. Shares of Iridium gained 37.5 cents to $9.00 each on Nasdaq. (http://dailynews.yahoo.com/headlines/bs/story.html?s=v/nm/19990528/bs/telecom_iridium_2.html)

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