Iridium defaults on $US1.5 billion loans

Iridium on Wednesday defaulted on an $US800 million loan, as well as another $750 million guaranteed bank loan.

The troubled satellite company, which has a network of 66 LEO (low-earth orbiting) satellites, enabling its customers to communicate from even the most remote parts of the globe, is continuing to consider capital restructuring options, according to a press release issued on Wednesday.

Iridium last made headlines in April, when Edward Staiano, its chief executive officer resigned, following hard on the heels of the departure of the company's chief financial officer Roy Grant.

Also in April, Motorola Inc, which owns a large share of Iridium, stated that it may be forced to financially support the company if it could not meet its financial obligations.

Last month, what could be viewed as the final warning was issued as it became obvious that Iridium probably could not repay the twice extended loans on time. Motorola said that it was considering forcing Iridium into bankruptcy reorganisation or liquidation unless the company could restructure its capital issues out of court.

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