Iridium Bondholders Oppose McCaw Plan

Iridium bondholders will file a motion Monday opposing Craig McCaw’s plan to pay about $600 million for control of the bankrupt satellite telephone company and will ask a judge for permission to sue Motorola Inc., Iridium’s largest shareholder, investors familiar with the proceedings said. Cellular phone pioneer McCaw is poised to take Iridium out of bankruptcy after agreeing this week to provide the company with $74.6 million in financing. Iridium’s funding from investors led by Motorola runs out on Tuesday. Motorola would retain a stake in the reorganized company. Under McCaw’s plan, the stakes of unsecured debt holders and existing common stock would likely be worthless. Iridium owes about $1.45 billion to bondholders. Iridium filed for bankruptcy protection after failing to attract enough subscribers to its 66-satellite global phone network.