Bankruptcy Court Approves Financing for WorldSpace
[Satellite Today 10-23-08] WorldSpace Inc. received approval from the U.S. Bankruptcy Court in Delaware for the first part of an interim debtor-in-possession financing in an amount up to $2 million, WorldSpace announced Oct. 22.
The funds will enable WorldSpace to meet payroll obligations to critical employees and commence a process to sell the company or its assets. The holders of the WorldSpace’s existing senior secured and convertible notes have agreed to provide, subject to the satisfaction of certain conditions, a financing facility of up to $13 million for a period of 90 days in order to facilitate a sale transaction.
Bank Street Group LLC has been appointed as WorldSpace’s financial advisor in support of the sale and/or restructuring process. Robert Schmitz of Quest Turnaround Advisors LLC has been appointed as the company’s chief restructuring officer.
WorldSpace Inc., along with its U.S. subsidiaries 1worldspace Systems Corp. and AfriSpace Inc., filed Oct. 17 voluntary petitions for reorganization under Chapter 11. 1worldspace India, a wholly owned independent business unit, has not filed for protection from its creditors and will continue business activities as usual.