The U.S. Bankruptcy Court in Delaware has approved up to $2 million in interim financing for WorldSpace Inc. so it can make its payroll to critical employees and begin a process to sell the company or its assets.
The satellite digital radio company WorldSpace Inc., along with its U.S. subsidiaries WorldSpace Systems Corp. and AfriSpace Inc., has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
The bankruptcy court appointed the Bank Street Group as the satcaster’s financial advisor in support of either a sale or a restructuring process. WorldSpace appointed Robert Schmitz of Quest Turnaround Advisors as its chief restructuring officer reporting to Chairman/CEO Noah Samara.
WorldSpace will continue to operate its business and manage its assets as a “debtor-in-possession” under the jurisdiction of the court.
The holders of the company’s debt have agreed to provide financing of up to $13 million for a 90 day period in order to facilitate a sale, pay employees and preserve the core assets of the company.
WorldSpace India, a wholly owned independent business unit operating in the market where most of the company’s customers are located and revenues are generated, has not filed for protection from its creditors and continues its business activities, the company said.