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

To: Marty Rubin who wrote (2350)	8/13/1999 1:41:00 PM
From: Marty Rubin	Read Replies (2) \| Respond to of 2693

Noteholders Group Files Involuntary Chapter 11 Petition Against Iridium NEW YORK--(BUSINESS WIRE)--Aug. 13, 1999--In an effort to protect the assets of the company and provide the necessary time to restructure its debt, a group representing the holders of the Senior Notes of Iridium Operating LLC and Iridium Capital Corp. today filed an involuntary Chapter 11 petition against the companies in the United States Bankruptcy Court in the Southern District of New York. The group -- The Steering Committee of the Informal Committee of the Holders of the Senior Notes of Iridium -- which directly holds approximately 25 percent of Iridium's $1.45 billion in outstanding Senior Notes, is drawn from a group of holders owning approximately two-thirds of those notes. The petition was filed on behalf of the group by Weil, Gotschal & Manges. Under United States Bankruptcy law, Iridium has 20 days from the service of the summons to respond to the involuntary petition. During those 20 days, the company can continue to operate its business in the ordinary course. The filing follows disclosure earlier this week that the satellite-telephone venture is in default on its $800 million Senior Secured Credit Facility and its $750 million Guaranteed Credit Facility. On July 15, 1999, Iridium failed to make a $90 million interest payment due on its Senior Notes. "We have been in active negotiations with the company for the past month," said Talton Embry of Magten Asset Management Corporation, a member of The Steering Committee. "Despite the best efforts of the parties involved, consensual agreement could not be reached on a restructuring plan. It became clear to the various parties at interest that a Chapter 11 filing was inevitable and, unless drastic action was taken, the company's assets could be at serious risk. Iridium is a valuable franchise. With the right cost and capital structure, we are confident that Iridium will have a bright future. We are hopeful that during the 20 days Iridium has to respond to this petition, the parties can come together and reach an accord which will result in the successful reorganization and restructuring of the company." Motorola Inc., the former owner and largest investor of Iridium, still owns an 18 percent interest in the company. Iridium World Communications, Ltd. (Nasdaq:IRID) is the public equity vehicle of Iridium LLC. CONTACT: Sitrick And Company Michael Sitrick or Michael Geczi, 310/788-2850 AUG 13,1999 13:23 EASTERN