Motorola Settles Iridium Bankruptcy Cases
Motorola said a judge Tuesday approved a global settlement of disputes in the Iridium bankruptcy cases pending in the U.S. Bankruptcy Court for the Southern District of New York.
The Schaumberg, Ill., telecommunications giant said approval of the settlement resolves in its favor, at no out of pocket cost to the company, all pending claims against the company arising from Iridium's bankruptcy proceedings.
"Since 2001, the court-appointed statutory creditors' committee has been actively pursuing claims against Motorola for voidable preference, fraudulent conveyance, breach of contract and breach of fiduciary duty, and sought more than $4 billion in total damages," Motorla said in a statement. "With the global settlement announced today, Motorola will pay nothing."
The resolution follows Motorola's victory in a first phase trial conducted from October 2006 to June 2007, which focused on certain essential elements - solvency and capital adequacy - of the committee's $3 billion preference and fraudulent conveyance claims.
In August, a judge ruled entirely in favor of Motorola and in September, he entered judgment for Motorola on those claims.
Rather than proceed to an expensive and time-consuming further trial, the parties conducted comprehensive settlement discussions, including a mediation held in February 2008. The global settlement approved by the judge and unveiled Tuesday was the result of those discussions.
-Thomas Derpinghaus; 201-938-5400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 20th May 2008
