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To: djane who wrote (5728)	7/14/1999 5:54:00 PM
From: Rocket Scientist	Respond to of 29987

I'm as happy as anyone that G* is recovering from recent gross undervaluation, but the run we've had since the announcement of the financing in late June (we're up 75% in 15 trading days!) is pretty amazing, especially in light of Iridium's travails. I still hold the opinion that bad news for Iridium is not good news for G. BTW, the "reference to G's 10x lower costs than I" is incorrect, IMO, unless one is talking about cost per minute of fully loaded systems, and believe that G has 7X the capacity and 1.5X the life of Iridium. I believe G* annual operating + debt service cost is probably around 70+% of Iridium's.

To: djane who wrote (5728)	7/14/1999 6:41:00 PM
From: djane	Read Replies (2) \| Respond to of 29987

briefing.com. 15:45 ET ****** Iridium World Communications Ltd. (IRID) 6 7/8 -1 5/16: Although IRID shares have shed 16% on the session, given the circumstances, investors seem to be remaining extremely calm. According to Motorola Inc. (MOT 94 9/16 -1 15/16), the provider of wireless telecommunications services faces one of three options: Chapter 11 bankruptcy protection, an out-of-court restructuring or liquidation. Motorola, which is a major stakeholder in IRID and guarantor of a substantial portion of the company's loans, also warns that it does not plan to provide any further support to Iridium World beyond existing contractual commitments unless there is substantial participation in an Iridium restructuring by the company's other backers. In response to Motorola's dire prognosis, CS First Boston downgraded the stock from "hold" to "buy." Why only one downgrade? Because most of the remaining analysts already rate IRID a "hold." One firm even rates the shares a "strong sell." One certainly can't blame Motorola for wanting to cut its losses. In the latest qtr alone, Motorola took a $126 mln charge to write-down the value of IRID's plummeting bonds. In addition, the company is already on the hook for more than $1.5 bln in guarantees... But as investors have learned over the recent past, IRID is not an easy short. After hitting a 52-week low of $4.97 per share on June 14, IRID shares spiked more than 200%, as investors betting on company's demise got caught in an old-fashioned short-squeeze. The current Short/Interest ratio on IRID is 4.7 days. -DS

To: djane who wrote (5728)	7/14/1999 6:51:00 PM
From: djane	Respond to of 29987

Motorola Warns on Phone Investment (via I* yahoo thread) By CLIFF EDWARDS AP Technology Writer CHICAGO (AP) - Motorola Inc. (NYSE:MOT - news) executives warned Wednesday that its troubled satellite phone investment could soon face bankruptcy or liquidation, causing shares in both companies to fall sharply. Motorola president Christopher Growney advised Wall Street analysts that it would not continue to invest in Iridium World Communications Ltd (Nasdaq:IRID - news). unless other backers also helped in its rescue. ''With substantial participation of all significant parties, we believe Iridium LLC needs to, and can, deliver an achievable business plan based on the right financial restructuring solution,'' Growney said. Executives of the communications equipment maker support the global phone venture, but they also must consider the interests of Motorola's stockholders, Growney said. Credit Suisse First Boston immediately lowered its recommendation on Iridium World Communications Ltd. to sell from hold. Iridium's shares fell $1.433/4, or 18 percent, to $6.75 on the Nasdaq Stock Market. Motorola's shares fell $1.621/2 to $95.871/2 on the New York Stock Exchange. Motorola owns an 18 percent stake in Iridium, has backed loans and is producing handsets for the venture. Its total financial exposure is $2.2 billion. Motorola has built reserves to cover part of any potential loss and Growney said Iridium's fate should have no impact on Motorola's earnings. The company disclosed Tuesday it had taken a $126 million second-quarter charge to profits to write down the value on Iridium bonds that have lost much of their value. Other major Iridium investors include Lockheed Martin Corp. (NYSE:LMT - news), Raytheon Co. (NYSE:RTNa - news), Sprint Corp. (NYSE:FON - news) and American International Group Inc. (NYSE:AIG - news) If an out-of-court restructuring does not take place in coming weeks, Iridium might be forced into Chapter 11 bankruptcy protection or liquidation, Growney said. Creditors have given several extensions to Iridium as it falls well short of the number of subscribers it had promised by earlier this year. Its third extension since May on $800 million in loans expires Aug. 11. Critics say Iridium's phones are too bulky and must have a line-of-sight connection to low-orbit satellites, making them difficult to operate indoors. Growney also told analysts that Motorola, based in Schaumburg, Ill., is on target to meet second-half fiscal expectations as it continues to see a rebound in sales of computer chips and digital handsets. The two products account for nearly 68 percent of total earnings.