Publications
Publications
- March 2000 (Revised April 2003)
- HBS Case Collection
Iridium LLC
By: Benjamin C. Esty, Fuaad Qureshi and William J Olson
Abstract
This case involves part of a module on financing large projects in the elective curriculum course entitled "Large-Scale Investment." It is set in August 1999, just after Iridium, a global communications firm, declared bankruptcy. Although the case describes Iridium's creation, development, and commercial launch, it concentrates primarily on the firm's financial strategy and execution as it raised more than $5 billion of capital. It describes the specific securities Iridium issued, the sequence in which it issued them, and the firm's financial performance prior to bankruptcy. Using analyst forecasts, students can value the firm prior to its bankruptcy, but will recognize how difficult it is to value technology start-ups given the uncertainty in demand.
Keywords
Project Finance; Insolvency and Bankruptcy; Financial Strategy; Communications Industry; Technology Industry
Citation
Esty, Benjamin C., Fuaad Qureshi, and William J Olson. "Iridium LLC." Harvard Business School Case 200-039, March 2000. (Revised April 2003.)