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To: JGoren who wrote (11999)	6/10/2000 5:47:00 PM
From: JGoren	Respond to of 13582

Chase sues MOT because MOT refuses to honor its Iridium loan guarantee: Chase Sues Motorola Over $300 Mln Loan Guarantee for Iridium New York, June 9 (Bloomberg) -- Chase Manhattan Corp., the No. 2 U.S. bank, sued Motorola Inc. claiming the No. 2 cellular phone maker has refused to pay $300 million it owes on a loan guaranty it provided for bankrupt satellite phone company Iridium LLC. New York-based Chase and other banks loaned $800 million to Iridium in 1998 because Motorola, Iridium's largest shareholder, agreed to guarantee $300 million of the loan, according to the suit, which was filed today in New York State Supreme Court in Manhattan. Although Iridium defaulted on the loan, Motorola has refused to provide the guaranteed amount, the suit says. In refusing to pay, Motorola has relied on a certificate that Iridium issued in February 1999 attesting that it had met certain financial and sales objectives specified in the loan agreement, the suit says. That certificate was ``false, incorrect, prepared in bad faith and materially misleading,'' Chase claims. Schaumburg, Illinois-based Motorola officials didn't immediately return a call seeking comment. Iridium, which filed for Chapter 11 bankruptcy court protection last August, said in March it would cease operations. The $7 billion project failed to attract customers because the company's bulky phones cost as much as $3,000 and were unreliable. Jun/09/2000 18:58 ET