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

The essential guide to IT transformation

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

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.