, which holds an 18 percent stake in the company, agreed to commit $20 million so that Iridium could continue to operate through mid-February. Although Motorola has been a big supporter of the Iridium system, the company has taken huge hits against its earnings in the last year because of its investment in Iridium.
Now Motorola is trying to cut its losses and assure jittery shareholders. If Iridium's reorganization plan is not in place by the February 15 deadline, Motorola said that it would suspend operations.
It is unlikely that deadline will be met, industry analysts said.
"I am hearing that [Iridium] is not going to make the deadline," says Armand Musey, an analyst with Banc of America Securities in New York City.
Officials at Iridium and Motorola didn't return calls regarding a possible arrangement with McCaw.
The deal, expected to be announced sometime this week, is still being hashed out between McCaw and Iridium's bondholders, strategic partners and Motorola brass.
"It's an extraordinarily complicated process," Musey said.
And one that is not likely to happen overnight.
Even if McCaw finesses a deal, it still has to be approved by a federal bankruptcy judge. In addition, McCaw will also have to jump through regulatory hoops involving antitrust issues as he continues to buy large chunks of the mobile phone industry.
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