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To: djane who wrote (7139)	9/2/1999 2:47:00 AM
From: djane	Read Replies (1) \| Respond to of 29987

FOCUS-Iridium names restructuring team, CFO leaves Wednesday September 1, 5:35 pm Eastern Time (Adds details paras 5, 8-11) WASHINGTON, Sept 1 (Reuters) - Iridium LLC (Nasdaq:IRIQ - news), the global satellite telephone company that filed for bankruptcy protection last month, said Wednesday it hired a team of specialists to help it restructure. Iridium, which offers telephone service anywhere in the world via a system of 66 low-earth orbiting satellites, also said Leo Mondale had resigned as chief financial officer, a post he had held since April. ``I accepted the CFO position to support Iridium's efforts to bring about an out-of-court restructuring,' Mondale said in a statement. ``Since this is no longer possible, it is appropriate for me to step down and let the new management team, with reorganization experience, take over.' Iridium, which is 18 percent owned by technology group Motorola Inc., (NYSE:MOT - news) said it had hired Alvarez & Marsal Inc., a New York-based firm that specializes in returning ailing companies to financial health. David Gibson, a managing director for Alvarez & Marsal, was named interim CFO, while another managing director, Joseph Bondi, was named chief restructuring officer, Iridium said. Gibson and Bondi declined interview requests. ``At this stage of the financial process, it is vital that we engage all the appropriate expertise to get our restructuring done,' John Richardson, Iridium's chief financial officer, said in the statement. Iridium filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code on Aug. 13 after it defaulted on more than $1.5 billion in loans. The company has struggled to sign up subscribers to its service. Critics have said Iridium's service was too expensive, although Iridium slashed equipment and service prices by up to 65 percent in June in a bid to woo customers. Also, at 16 ounces, the phones weigh considerably more than cellular handsets, and they require a separate attachment for use inside buildings or cars where the line-of-sight contact with orbiting satellites is blocked. Analysts questioned whether there was a future for satellite phones after ICO Global Communications Ltd., (Nasdaq:ICOGF - news) a key Iridium rival, filed for bankruptcy protection last week. The analysts said satellite phone companies underestimated the rapid expansion of cellular phone service, which slashed demand for satellite phones. Still, Iridium's Mondale said he thought Iridium would recover from its financial difficulties. ``I maintain my belief in the Iridium concept and my confidence in the many capable individuals I have had the privilege to work with across the Iridium enterprise,' Mondale said in the statement. ``I fully expect to see the venture become a commercial success in the future.' Trading in Iridium shares has been suspended on Nasdaq since the bankruptcy filing last month. Copyright ¸ 1999 Reuters Limited. All rights reserved.