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

To: Marty Rubin who wrote (1879)	5/30/1999 2:02:00 PM
From: dumbmoney	Read Replies (1) \| Respond to of 2693

it would be hard to understand how "the banks are guaranteed to get at least 30% back no matter what" when the bonds were trading at $.18/$1.00 (please double-check this figure. i did not check the actual price but overheard this figure. it later moved up). The pecking order is 1) bank debt 2) bonds 3) equity With respect to the bank debt, there is $750 million guaranteed by Motorola, and $800 million secured by the assets of Iridium and backed by the $243 million reserve capital call. It's the $800 million secured bank debt which is the immediate problem. The bankers will get their money one way or another. The bondholders will get screwed, and everyone knows it, which is why it's trading at bankruptcy levels.