Feeds

Iridium asks shareholders to cut stakes by 40 per cent

Move to allow bondholders to convert debt bonds to equity

  • alert
  • submit to reddit

Boost IT visibility and business value

Iridium, the all-but-bankrupt satellite-based mobile phone service, has demanded its shareholders take a 40 per cent cut in the value of their stakes in the company, according to a report in today's Financial Times. The move is the latest stage in Iridium's convoluted restructure. Iridium currently has bonds valued at $1.45 billion in total. A $90 million interest payment is due on that debt, but Iridium now wants to convert the bonds into equity, giving bondholders a combined 25 per cent stake in the company. That will clearly devalue existing shareholders' stakes, so CEO John Richardson is asking them if they mind, according to the FT report. Given Iridium has already filed for Chapter 11 protection, it's clear the company isn't long for this world, unless it can make the restructure work and clear its debt. That may well be sufficient incentive for company shareholders to side -- albeit unwillingly -- with Richardson on this one. ® See also Iridium defaults on debt Iridium crisis nears Motorola demands help keeping Iridium in orbit

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.