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Motorola Ordered to Pay $300 Million

January 09, 2002|Associated Press

A federal judge has ordered Motorola Inc. to pay $300 million to Chase Manhattan Bank, an amount it guaranteed Chase in 1998 as part of a loan to ill-fated satellite phone company Iridium.

U.S. District Judge Alvin H. Hellerstein ruled in New York that Motorola remained bound by its obligation to provide a $300-million guarantee to Chase, a unit of J.P. Morgan Chase & Co., as part of Chase's $800-million loan to Iridium.

Motorola called the ruling a first step in the case and noted that a trial on its counterclaim has yet to be scheduled.

Separately, the company confirmed it will lay off about 20% of its 600 top executives by April as part of the 9,400 job cuts announced Dec. 18.

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