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To: djane who wrote (7174)	9/2/1999 7:05:00 PM
From: djane	Respond to of 29987

Bloomberg. Iridium Loses Second CFO In 5 Months [Check out the Musey quote] By Josh Fineman at Bloomberg News 02 September 1999 Iridium LLC, which filed for bankruptcy protection last month, said Leo Mondale resigned as chief financial officer of the satellite-telephone company, the second CFO to leave in five months. Mondale, an Iridium executive since 1990, became CFO of the troubled company in May after Roy Grant announced his resignation in March. That began a shakeup that led to the April resignation of Edward Staiano as chief executive. Today, Iridium named turnaround specialists David Gibson as interim CFO and Joseph Bondi as chief restructuring officer. Iridium, whose biggest investor is Motorola Inc., defaulted on $1.55 billion in bank loans last month after failing to attract enough users to its 66-satellite global phone network. The company, which expected to have as many as 600,000 customers by the end of 1999, only has about 20,000, analysts have said. "Before this (resignation), I would have said there was a 75 percent chance they would have found a way to salvage it," said Banc of America Securities analyst Armand Musey. "This clearly looks like a setback, and it's an indication that things haven't gone the way they wanted." Bondi and Gibson are managing directors at Alvarez & Marsal Inc., a New York-based corporate-turnaround company. Mondale took the CFO job "to support the company's effort to bring an out-of-court restructuring," said spokeswoman Michelle Lyle. Since Iridium wasn't successful in doing so, "he resigned so we could hire someone with in-court expertise." Shares of Iridium World Communications Ltd., the publicly traded arm of Washington-based Iridium LLC, are still halted almost three weeks after the company filed for Chapter 11 bankruptcy protection Aug. 13. Iridium stock, which has fallen 90 percent this year, last traded at 3 1/16. Copyright 1999, Bloomberg L.P. All Rights Reserved.