WorldSpace Files For Chapt. 11 Bankruptcy
October 17, 2008 at 2:10 PM (PT)
WORLDSPACE, INC., a leading provider of satellite radio services outside the U.S., filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court in DELAWARE, MARKETWATCH reports. The company's Board of Directors unanimously determined that Chapter 11 reorganization was necessary for the Company to engage in an orderly process to raise sufficient funds to repay its senior secured and convertible notes by means of either a sale of the Company or its assets, or a recapitalization of the Company.
WORLDSPACE will keep its doors open as a "debtor-in-possession;" with financing facility of up to $13 million for a period of 90 days in order to facilitate a sale transaction. The financing facility will help WORLDSPACE pay salaries of critical employees and continue operations which are critical to preserving the value of its core assets through the term of the facility.