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Iridium CFO resigns
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September 1, 1999: 3:54 p.m. ET
Satellite telecom firm retains turnaround specialist to help in financial overhaul
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NEW YORK (CNNfn) - Iridium LLC's financial chief resigned Wednesday, the latest in a series of troubles for the satellite telecom firm. The company also said it has retained a turnaround firm to help with its financial restructuring.
Leo Mondale, whom Iridium characterized as instrumental in raising initial investment capital for the firm, has resigned his post as chief financial officer effective immediately after four months at the post.
Iridium, which filed for Chapter 11 bankruptcy protection last month, is scrambling to come up with a restructuring program to revive its rapidly sinking business.
The company has retained Alvarez & Marsal, a New York-based turnaround specialist, to help in its restructuring. David Gibson, a managing director at Alvarez, will serve as Iridium's interim CFO. Another Alvarez managing director, Joseph Bondi, will serve as chief restructuring officer.
"At this stage of the financial process, it is vital that we engage all the appropriate expertise to get our restructuring done," said John Richardson, Iridium chief executive officer.
Iridium filed for bankruptcy protection in August after defaulting on $1.5 billion of its outstanding debt. The company has experienced significant financial difficulties in the past 12 months, mostly because it's had difficulty gaining subscribers for its global telephone service.
Trading of Iridium shares have been halted since it filed for bankruptcy protection.
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Iridium
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