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

To: Olsinvest who wrote (2398)	8/17/1999 9:15:00 AM
From: Jeff Vayda	Respond to of 2693

3 items from Phillips Telecon web: 8/17/1999 Article:137431 Ten companies hold $406.6 million of Iridium debt The 10 largest holders of Iridium LLC debt retain $406.6 million of the $519.6 million in bonds for the troubled company, according to Capital Access International, a data research firm. Iridium filed for Chapter 11 bankruptcy protection Friday after defaulting on loans of more than $1.5 billion. Bondholders earlier in the day filed a separate petition to force the company into involuntary Chapter 11 (DAILY, Aug. 16). Capital Access, of Murray Hill, N.J., listed the top 10 bond holders and the debt they hold as follows: 1. Fidelity Management & Research Co. ($125.6 million) 2. Smith Barney Asset Management ($59.8 million) 3. Franklin Advisers Inc. ($47 million) 4. Lindner Asset Management Inc. (Boston) ($33 million) 5. Prudential Global Asset Management (Fixed Income) ($27.4 million) 6. American Express Financial Advisors Inc. ($27 million) 7. Putnam Investments ($24.2 million) 8. Northstar Investment Management Corporation ($22.5 million) 9. Waddell & Reed Investment Management Co. ($20.9 million) 10. Fidelity Management & Research Co. (Fixed-Income Division) ($19.2 million) Iridium was also cut yesterday from a buy rating to neutral by Lehman Brothers of New York. "I think the equity will be more diluted than I hoped," John Benchee of Lehman Brothers, told The DAILY. "I think the investors will get something, but not as much." Another factor in the cut was statements by Iridium on Friday that sales were being hurt because of its financial troubles. "It's hard to get someone to pump $1,000 per [satellite] phone when they don't know if [Iridium] will be there to carry the phones," Benchee said. Copyright 1999 The McGraw-Hill Companies, Inc. 8/17/1999 Article:137405 SPACEBUSINESS TODAY -- AN AEROSPACE DAILY EXTRA Iridium faces dissention as it seeks reorganization under Chapter 11 Iridium LLC faces an uphill battle as it tries to restructure its financing and obtain another $400 million-$600 million to relaunch its satellite telephone service. The firm filed for voluntary Chapter 11 in the U.S. Bankruptcy Court in Delaware Friday as part of a plan to complete a financial restructuring. The move was forced by a Sunday deadline for a bond payment, CEO and Vice Chairman John Richardson told Wall Street analysts Friday. Iridium may face dissention in the ranks of its business affiliates and debt holders as it struggles to recapitalize. Richardson acknowledged that Chapter 11 was not "conventionally recognized" worldwide as a bankruptcy mechanism and that the company would need to reassure its partners and service providers that the filing was "business as usual in the way forward." Richardson expressed surprise that a group of the company's bondholders had filed a separate petition for involuntary Chapter 11 in New York. Armand Musey, senior satellite analyst with Banc of America Securities in New York, described the bondholders' filing as an "antagonistic turn of events" and noted that the New York courts have historically been considered to be more favorable to debt holders. Anita Antenucci, vice president of Quarterdeck Investment Partners, said she thinks the stakeholders will work out a deal. "I seriously doubt if anyone is going to write off billions of dollars of assets in space . . . . The best news is that [Iridium competitor] Globalstar is supposed to go operational in a month. The market is so immature that more customers using these things will be better. The best analogy is IBM and Macintosh. It took a bunch of people making PCs and laptops before they caught on. The best technology solution does not always win." Though Richardson said Iridium doesn't intend to change its newly revised price structure, suggestions are being made for other changes. According to an analyst following the industry, one option is having Iridium serve only certain regions to reduce long-term maintenance. - Dee Ann Divis (deeann_divis@mcgraw-hill.com) and Jason Bates (jbates@mcgraw-hill.com) Copyright 1999 The McGraw-Hill Companies, Inc. Iridium Building Castles In The Air? Iridium [IRID], the financially imploding satellite-telephone pioneer, is preparing to regroup in the wake of its decision to file for Chapter 11 bankruptcy. "We still have enough cash for the next few months," spokeswoman Michelle Lyle said. But the picture remains grim. Iridium filed for bankruptcy Friday hours after its bond holders and parent company Motorola failed to reach an agreement on how to pay $90 million in interest on $1.45 billion in bonds. The bankruptcy filing rocked Wall Street, halting trading on Iridium shares and sending bond prices tumbling. The bankruptcy proceeding is part of a restructuring plan that Iridium officials say has the support of banks, bondholders and strategic partners. Meanwhile, Iridium's plunging stock -- which closed at 3 1/16 Friday -- has reached bare bones, according to analysts. Iridium shares last were traded Friday, the day the satellite pioneer filed bankruptcy.