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

Secure remote control for conventional and virtual desktops

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.