Iridium’s Assets Sale Canceled

Iridium’s attempt to sell assets to Castle Harlan Inc. for $50 million collapsed after the investment firm concluded during a review that the bankrupt satellite-telephone company isn’t capable of making money. Castle Harlan said in June that it planned to buy the satellites and other assets after Iridium failed to find a buyer in March, seven months after filing for Chapter 11 bankruptcy protection. Now that Castle Harlan has declined to proceed with the offer, Iridium’s 66 satellites could be shut down and destroyed. Iridium’s $7-billion project failed to attract customers because the company’s bulky phones cost as much as $3,000 and were unreliable. Motorola Inc., the founder of Washington-based Iridium, said in March that it would maintain the Iridium system until a plan to take the satellites out of orbit was completed. Motorola now says it’s moving ahead with plans to destroy the satellites. Motorola closed off 69 cents at $33.25 on the New York Stock Exchange.