Barclays faces $100m Iridium hit
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BARCLAYS BANK is facing a potential exposure of $100m (pounds 62m) following the collapse of Iridium, the satellite telephone venture that filed for voluntary Chapter 11 bankruptcy protection in the US last week.
Lehman Brothers, the investment bank, said in an internal note that the exposure was unlikely to be more than pounds 100m and would have no impact on second-half earnings.
Barclays said earlier this month it expected bad loan provisions in the half to be at similar levels to those in the first half.
The bank has not commented on its exposure to Iridium. However, sources say the figure is about $100m. The exposure takes the form of a share in an $800m syndicated loan Barclays managed with Chase, the US bank. Barclays also has some Iridium high-yielding bonds held through Barclays Capital.
Contrary to earlier reports from the US, Barclays is not part of the bondholders group that filed a bankruptcy petition late last week after Iridium failed to meet interest payments on some of its $1.5bn in bank loans.
Electronics group Motorola holds 18 per cent of Iridium.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments