Troubled MSS operator Iridium has invoked a 30-day grace period for the payment of $90 million in interest due on July 15 on its $1.45 billion outstanding senior notes. The grace period gives Iridium some additional time to continue discussions with creditors and investors on the restructure of its debt. Iridium is trying to win the backing of its investors for a new business model focusing on different markets than the ‘international business travellers’ it originally targetted.

Iridium had a couple of pieces of positive news last week. Lockheed Martin Tactical Aircraft Systems and AlliedSignal Inc are joining forces to demonstrate two-way satellite communications on tactical fighters using Iridium’s phone system, reports our sister publication Satellite News. The companies say this will be a first for both Iridium and for any US Air Force fighter aircraft. Iridium North America also announced that crucial components of its system under its control have been analyzed, upgraded and determined to be Y2K ready.