WorldSpace Begins Sale Process
If you are invested in the satellite radio sector, it is likely through Sirius XM radio rather than WorldSpace. For sector watchers, the recent happenings at WorldSpace do not bring about confidence, yet at this point there are likely more than a few people wondering if the problems at Worldspace are a precursor for Sirius XM.
Today, WorldSpace gained access to $2M in Interim Dip Financing and began their sale process.
WorldSpace has received the approval of the United States Bankruptcy Court in Delaware for the first part of an interim Debtor-in-Possession (DIP) financing in an amount up to $2M which will enable the company to meet payroll obligations to critical employees and commence a process to sell the Company or its assets.
WorldSpace, along with its U.S. subsidiaries WorldSpace Systems Corporation and AfriSpace, Inc., filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Delaware on Friday, October 17, 2008. In accordance with the terms of the DIP financing facility for which the Company has received initial court approval and intends to seek further approvals in the coming weeks, the Company has commenced a process to market and sell the Company or its assets, or complete an alternative restructuring transaction.
WorldSpace also announced that they have appointed Robert Schmitz of Quest Turnaround Advisors, LLC as its Chief Restructuring Officer reporting to Chairman and Chief Executive Officer Noah Samara to assist the Company through an orderly sale or recapitalization process.
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 in the ordinary course.
As previously stated, WorldSpace will continue to operate its business and manage its assets as a ”debtor-in-possession” under the jurisdiction of the court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the court.
The holders of the Company’s existing senior secured and convertible notes have agreed to provide, subject to the satisfaction of certain conditions, a DIP financing facility of up to $13M for a period of 90 days in order to facilitate a sale transaction. The financing facility is expected to enable the Company to continue to 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.
Position: Long SIRI, No Position WorldSpace
SXM, you mean .29 +16.68 after hours?
0.31 0.02 / 6.16 Oct 24 7:58pm ET
Sure would’ve liked a similar pop (during market hours) when the SP was north of $2 or better.
in this entire chain of comments, there was only ONE comment that related to the article, and another one that had a sentence related, but the rest not related.
I agree with sam, sirius is no worldspace.
Socialrunnings, I’ve been on this site for years. U r bashing the stock and I am bashing u for doing it. Stop crying!
Kevin… Socalrunning remarks are right on the money.We are not on the Yahoo board for a reason. Want to guess what it is?
With all due respect, we understand the risk of stock investing. We also understand that a CEO and mangement has a obligation to shareholders. The very first obligation is a ROI to the stockholders period.
That is what you seem not to understand or even question.
When anayst’s start even questioning the motive of mangement the warnings signs are pretty clear.
We can sell, or we can ask mangement to explain their actions and how their decisions are going to benefit shareholders.
PM…TYLER…I could not agree with you more PM.
I would love to submit a list of questions for the mangement of Sirius.I sure about 80% of all the questions would be the same from the shareholders.
I would like to see them on the show, they don’t even have to take questions from callers, just correlate the questions from the e- mails with the most ask questions first. You could even submit them a week early so SiriusXM mangement has the time to review them.
We are not trying to catch anyone off guard, we just want some answers from mangement.
Contact Sirius and see what the investors relations responce is to coming on your’re show.
Please let us know what their responce is
I think it would be very beneficial to everyone.
imho
vaporgold
Kevin,
People have had to read your sorry shit for years?
Here I thought a couple days with your sorry ass sucked.
Your a true yahoo board number one asshole.
GFY.
Vaporgold. Thanks man.
Totally agree with your investment assessment above and what a reasonable expectation is.
Investors…
All of my communications with Michael Harleib have been in writing. The question I have ask him a couple times is listed below.
I know some of you have talked to him, can any of you shed any light on where he is going and what his motitives are?
I just don’t understand at this point what the Jeffery P. Fink connection has to do with the current situation and why Mr. Harlieb continues mentioning him.
What am I missing here?
Michael Hartleib
I have written and asked you before if the Current class action suit will be based on the incomptetance of mangement, and to keep the company from being sold public or private at distressed stock prices.
You answered by saying based on incomptetent mangement.
However, you keep sending e- mails for us to harass Jeffery P. Fink, and his current attorney.
It really is begining to look like you want to tie these two together so you can continue you’re fight with this lawyer and your previous suit.
As I said in my previous letter to you, that war is over and I would not join the class action suit if that was you’re intent.
I don’t see the connection with Jeffery P. Fink and the current proposed suit. If there is not one fine, if there is please state it.
vaporgold
michael hartleib wrote:
Try this link for Ruf law’s attorney. http://www.sdma.com/gregory-h-.....halliday/ Please give him a call or email. He was hired to protect Mr. Fink for his bogus suit!
TYLER…
Sorry,…I should have put a PLEASE contact Sirius investors relations and see if you can get them on the show.
I appreciate all of you’re efforts to try and keep us informed with all the latetst news reagarding SiriusXM.
Sometimes it may seem we take you for granted and blast you at times, but I believe it is always with respect.
vaporgold
Shark, good point about off topic stuff. Guilty but not alone, still will try to keep general SIRI stick stuff in the forum. Sorry Tyler….
“stock stuff….” Typos….