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

To: Marty Rubin who wrote (2327)	8/11/1999 9:19:00 PM
From: KM	Read Replies (1) \| Respond to of 2693

Iridium Defaults on $1.5 Billion in Loans; Several IPOs Are Postponed By Eileen Kinsella and Tara Murphy Staff Reporters 8/11/99 8:49 PM ET Global phone service provider Iridium (IRID:Nasdaq) is running out of lines -- credit lines, that is. The troubled operator defaulted on two loans totaling more than $1.5 billion, bringing the company one step closer to bankruptcy and posing potential problems for backer Motorola (MOT:NYSE). The most recent troubles were sparked by the default of an $800 million secured loan -- already in its third extension -- after the company failed to meet the loan's required customer and revenue growth targets. That in turn, triggered the default of another $750 million loan, generously provided by Motorola, a key shareholder. The company, which operates a $5 billion, 66-satellite network that took a decade to launch, says it continues to explore restructuring options. Iridium faces another deadline Sunday, when it is supposed to meet a $90 billion interest payment on its $1.45 billion in bonds. Bond holders can expect a lot of static around payout time.