After nine long years of discussions and demands, the Iridium bankruptcy saga has finally ended. Yesterday a bankruptcy court judge approved a settlement in which Motorola will not have to pay any out-of-pocket costs to unsecured creditors who had sought more than $4 billion in total damages.
Creditors blamed Motorola for the failure of the Iridium satellite venture, which promised to deliver satellite telephony to subscribers worldwide using a constellation of satellites. Iridium still exists but now uses the moniker Iridium Satellite LLC. The privately held firm bought the assets of the original Iridium for $25 million from Motorola in December 2000.