CHICAGO—A U.S. District Court judge ordered Motorola to pay US$300 million to Chase Manhattan Bank to satisfy part of a loan the bank made to Iridium before the satellite phone company filed for bankruptcy in 1999.
Motorola owned approximately 18 percent of Iridium.
The US$300 million loan guaranty is part of an US$800 million loan given to Iridium less than a year before the company folded. Chase accused Motorola of controlling Iridium and issuing false statements about Iridium’s revenues.
Motorola argued it did not owe Chase the money because the bank knew the risks before investing.
