Motorola settles Chase-Iridium lawsuit
Motorola Inc. announced it has settled all lawsuits filed by Chase Manhattan Bank regarding to its defunct Iridium satellite communications company
Under terms of the agreement, Motorola executive revealed the company will pay Chase Manhattan and Iridium’s other secured lenders an additional $12 million to resolve five remaining legal disputes related to more than $800 million in loans.
The settlement does not have any bearing on a separate lawsuit filed in U.S. Bankruptcy Court by the committee of unsecured creditors, which still seeks damages of more than $4 billion from Motorola.
Motorola – with an 18 percent stake in the startup – launched the Iridium system in November 1998. The venture faltered quickly and sought bankruptcy protection less than a year later.