Moto gets lucky, dodges $4bn Iridium payout

James Middleton

May 21, 2008

1 Min Read
Moto gets lucky, dodges $4bn Iridium payout

Embattled kit maker Motorola had a bit of good news on Wednesday, after a judge ruled that the outcome of the nine year old Iridium bankruptcy fight will not cost the company a penny.

Satellite operator Iridium went bust in 1999 and a creditors committee has been chasing Moto since 2001, accusing the company of fraudulent conveyance, breach of contract and breach of fiduciary duty related to the bankruptcy.

Had the decision gone the other way, it could have cost Moto as much as $4bn, which, given the company’s current financial status, would have weighed heavily.

Anne McClain Sidrys, a partner in Kirkland & Ellis, trial counsel for Motorola, said, “This case has been hard fought throughout its long run, against skilled and committed opponents.  It is gratifying to bring the matter to a close.”

In other news, satellite operator Intelsat announced that it has teamed up with Panasonic Avionics over a multi-year service agreement that will provide in-flight broadband access for airlines.

The service, Panasonic eXConnect, provides passengers with internet connectivity and a range of applications such as VPN, live television, shopping, streaming media, telemedicine, operational applications and personal device integration to the airline’s in-flight entertainment systems.

The platform will be based on Intelsat’s existing GlobalConnex SM Network Broadband service.

About the Author(s)

James Middleton

James Middleton is managing editor of | Follow him @telecomsjames

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