Samara, Idris Provide Liquidity to WorldSpace - Radio World

Samara, Idris Provide Liquidity to WorldSpace

An injection of available cash will allow financially challenged WorldSpace to continue its European business implementation while pursuing more financing, the company says.
Author:
Publish date:
Social count:
0

An injection of available cash will allow financially challenged WorldSpace to continue its European business implementation while pursuing more financing, the company says.

The Maryland-based firm said it has secured a financing facility for up to $40 million of subordinated financing from Yenura Pte. Ltd., a company controlled by WorldSpace Chairman/CEO Noah Samara. Yenura was set up by Samara and Salah Idris to invest in WorldSpace. The firm said it also secured a waiver of some pre-payment obligations owed to holders of existing debt.

The company is planning to launch a European mobile service in the Italian market and other initiatives, and is seeking more financing.

Under a previous debt agreement, WorldSpace must prepay up to $45 million of its debt with any new money it raises; those debt holders will now receive $10 million but have waived further pre-payment rights.

WorldSpace reported in November it lost $123.5 million in the first nine months of last year. The company has said it would seek to “shore up its liquidity” and was talking to potential investors and partners about equity and debt financings. In its most recent third quarter, as reported then, WorldSpace had revenues of $3.3 million, roughly flat with a year earlier. Its net loss for the quarter was $36.7 million, up from a loss of $28.9 million at that time the previous year.

Related

Worldspace Hunting for Cash

Worldspace’s operating expenses continue to far outweigh its revenue, according to a quarterly summary filed by the satellite company with the U.S. Securities and Exchange Commission.