Iridium Trying to Beat Loan Default Deadline

Iridium, which runs the first global satellite-based telephone network, said it’s still trying to restructure its debt and avoid a bankruptcy filing in the event it defaults on $800 million in loans. Iridium has until Monday to meet revenue and subscriber totals required by the loans’ covenants, and it isn’t close. Its chief executive, financial chief and marketing chief all have left in the last two months. Washington-based Iridium has revised revenue targets and plans to reduce the prices of phones and service. Analysts have criticized some Iridium phones for their unwieldy size and $3,000 price. Iridium, which is 19% owned by Motorola, had debt of about $3.02 billion as of March 31. Shares of Iridium closed at $8.81 on Nasdaq, up $1.25. Motorola’s shares fell $1.94 to $80.06 on the New York Stock Exchange.