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. Last Updated: 07/27/2016

Iridium Back in Peril

NEW YORK -- Another would-be savior is abandoning Iridium LLC in bankruptcy court, raising the possibility again that a $5 billion satellite system for mobile phones will burn up in the Earth's atmosphere.

Castle Harlan Inc., the New York investment bank that planned to buy Iridium's assets for just $50 million, said Friday it has decided that the business is too weak to save even at such a bargain-basement price. Officials at Iridium and Motorola Inc., the satellite company's primary backer, did not immediately return telephone calls seeking comment on the latest developments.

The Chase Manhattan Bank has filed with the U.S. District Court in Delaware, suing 17 members of Iridium for allegedly defaulting on loan payments. The members include the Khrunichev State Research and Production Space Center of Moscow, which received a 4.3 percent stake in Iridium for $82 million.