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Former PanAm CEO tries to revive Iridium

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CIOL Bureau
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Cats have nine lives. Iridium appears to have several more. Already having

been on the losing end of a dozen or more rescue attempts, and several court

orders to send its constellation of 66 satellites crashing back into the Earth’s

atmosphere, there may yet be some life left in Iridium.

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A new group of investors, headed by Dan Colussy, the former CEO of the

defunct Pan American World Airways, has offered $25 million to take over the $6

billion communications network. Reportedly, aerospace company Boeing would

operate the system.

A court hearing at which the latest offer will be reviewed by the US

Bankruptcy Court of New York, is scheduled for November 8. Keeping the Iridium

system in orbit is costing Motorola some $10 million a month. The Colussy deal

would relieve the company of that burden.

Colussy's newly organized company, Iridium Satellite LLC, has offered $6.5

million in cash, $18.5 million in convertible debt securities providing for

deferred cash payments and a 5 per cent equity stake in the new company. Boeing

is not investing any equity in the project and would strictly operate the system

as a paid service provider to the new owners.

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