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Technology Stocks : IRID - Iridium World Communications IPO Announced! -- Ignore unavailable to you. Want to Upgrade?

To: Marty Rubin who wrote (2200)	7/27/1999 1:04:00 AM
From: Marty Rubin	Read Replies (1) \| Respond to of 2693

Iridium Investors to Be Included in Restructuring Washington, July 26 (Bloomberg) -- Iridium LLC investors can expect to receive some compensation under the debt-laden global satellite-telephone company's restructuring plan, Chief Financial Officer Leo Mondale said. Progress is being made in the company's effort to reach an out-of-court restructuring, Mondale said, although bankruptcy is still a possibility. He wouldn't be more specific as to when a restructuring plan would be announced, or what type of compensation investors would receive. Washington-based Iridium last month received its third extension until Aug. 11 from banks to meet conditions on $800 million in loans. It also has until Aug. 15 to make a payment of $90 million in interest on its $1.45 billion in bonds. ''This would be not one of the restructurings in which we left equity holders high and dry,'' Mondale said. ''The restructuring we are advancing will not result in the equity holders being reduced to zero by any stretch.'' Iridium needs about 90 percent of its bondholders to approve an out-of-court restructuring, Mondale said. ''I can't rule out bankruptcy until we have got a successful out-of-court restructuring, which is what we are trying to get,'' he said. Iridium's price cuts, which went into effect this month, is luring new customers, Mondale said. Iridium announced the price cuts last month to try to new gain subscribers as demand fell. ''We have seen a marked improvement in our net daily additions since the new prices for handsets and service have made it into the market,'' Mondale said. Shares of Iridium World Communications Ltd., the publicly traded arm of Iridium LLC, fell 1/2 to 6 1/4. Schaumburg, Illinois-based Motorola Inc., Iridium's largest investor, fell 1 3/8 to 88 1/8. Jul/26/1999 19:59 (C) Copyright 1999 Bloomberg L.P.