Motorola in trouble over Iridium

The past comes up and bites them on the ass...

Motorola is facing a lawsuit from several money lenders following allegations that it acted fraudulently when arranging a loan for beleaguered satellite telephony venture Iridium in 1998. The loan was agreed eight months before Iridium filed for bankruptcy over three years ago, and now the lenders claim that both Motorola and Iridium were fraudulently induced to enter into the agreement. According to the Financial Times, some of Iridium's bankers have accused the firm of keeping two sets of books to please lenders, and that Motorola never made good on a $300m obligation to guarantee the loans. The case is due to come to court in New York on 19 November.