Motorola Settles Iridium Bankruptcy Cases
[Satellite Today – 5-22-08] A U.S. Bankruptcy court judge has rules that Motorola will not have to pay damages related to the Iridium bankruptcy, Motorola Inc. announced.
The May 20 decision resolves in Motorola’s favor all pending claims in the United States Bankruptcy Court for the Southern District of New York against Motorola arising out of Iridium’s bankruptcy proceedings. Since 2001, the court-appointed statutory creditors’ committee has been pursuing claims against Motorola for voidable preference, fraudulent conveyance, breach of contract and breach of fiduciary duty, seeking more than $4 billion in total damages.
“We have always been confident in our litigation position, and this resolution — ending the entire case at no out of pocket cost to Motorola — confirms our confidence was well-founded,” Peter Lawson, executive vice president and chief counsel for Motorola, said in a statement. “We are pleased to conclude this matter and resolve all of the company’s exposure to claims in the Iridium bankruptcy court.”
This favorable 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. The judge ruled entirely in favor of Motorola in August 2007, and in September 2007 entered judgment for Motorola on those claims.