WASHINGTON-Iridium L.L.C. is expected to unveil a new marketing plan and pricing structure this week, following news that it has laid off 15 percent of its work force.
According to the company, the layoffs were enacted throughout all departments, not confined to marketing as originally reported. The company named Sue Kennedy its new vice president of marketing.
Iridium stock enjoyed a small rally last week, rising more than a dollar to just under $8 at press time, after reaching its lowest point since its initial public offering.
However, another class-action lawsuit was filed against the company last week, this time on behalf of investors who bought the company’s 13-percent senior notes due 2005, series A/EN, between Sept. 9 and May 13.
Meanwhile, Motorola Inc. reportedly was near a decision on whether to commit more funds to the struggling company. A Reuters report quoted a Motorola executive saying the company will wait until July before making any final decision. Apparently, Motorola wants to see if Iridium meets the subscriber figures detailed in its bank covenant requirements necessary to receive continued bank financing, as well as review a revised business plan.
