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Iridium LLC (IRID) opted to attempt an in-court financial restructuring today when it filed for Chapter 11 protection under U.S. bankruptcy law with the U.S. Bankruptcy Court in Delaware.
The major stakeholders in this restructuring -- banks, bondholders and Iridium's strategic partners -- have voiced support for this course of action, Iridium officials said.
"Iridium believes they will continue to cooperate during this process," according to a company statement.
The intent by Iridium officials is to complete its financial restructuring under an orderly, court-supervised process. Iridium's current and future customers will not be affected by this action. There will be no interruption of Iridium' s global service, company officials said.
"The action is the most-efficient way to conclude Iridium's restructuring negotiations," said John Richardson, CEO of Iridium. "We are confident that Iridium will emerge from this process as a stronger and more vibrant company in the telecommunications marketplace."
Motorola Inc. (MOT), Iridium's largest investor and operator of the Iridium system, expressed strong support for the Iridium business from a financial and operational perspective. Motorola will continue its full operational...