Iridium’s bankruptcy is still having reverberations. Iridium’s creditors have begun their own claims against Motorola, which they allege, created the system and has failed in its legal duties to maintain the sat-phone system. The action, filed in the New York District Court, alleges Motorola knew of Iridium’s problems and failed to keep share and bond- holders informed. Instead, the suit claims, Motorola acted to get as much money out of the company as it could before the inevitable happened and Iridium was liquidated.

According to one report the various creditors, who hold IOUs totally some $2 billion (E2.16bn) between them, also argue Motorola signed contracts with Iridium that directly led to almost $1.4 billion being paid directly to Motorola with no benefit to Iridium. They also allege Motorola covertly competed with Iridium by producing satellite systems for Teledesic, a rival LEO system.