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
Kevin
Thanks for your expert advice.
Now I understand why you lost money in this stock, cuz your business expertise
at least we closed up today when market fell..this is going to be a longggggggg progressive climb…if you dont have 2 or 3 years to wait well you will be disappointed for the next year. we need some quarters showing profit and debt all paid.
Not sure what caused the rise, but I heard some rumor that I won’t even mention because it just that a rumor. Now the shorts likely reloaded at .30. I never trust this stock when it does a decent move up, as it always sems to make news after that.
Anyway, the Dow was supposed to drop 1300 points today the way they were talking, but you never ever get what you call for.
I don’t want to be in anything when the high volume selling really kicks in & it could be Mnday or anytime between then and election day.
Obama gets in and bye bye dow 8 or 7,000 & maybe hello high 6000’s – at least intraday.
Can we get a new article Tyler – getting tired of seeing Worldcom.
-corrected last sentence grammer from above.
Not sure what caused the rise, but I heard some rumor that I won’t even mention because it just that a rumor. Now the shorts likely reloaded at .30. I never trust this stock when it does a decent move up, as it always seems to make new lows after that.
– man I’m a mess tonight.
I meant tired of seeing Worldspace article, not Worldcom, but funny how both Worlds went belly up.
Kevin. They have the yahoo board for clowns like you. Go bash the posters over there. Over here we just post things cause thats what we do. We had hoped to leave the dickheads like you over at the yahoo board where you all belong.
If these mother fuckers (Mel and his worthless cronies) don’t come out of hiding and say something, ANYTHING, I…. Uh….um….; I cant even talk I’m so pissed off over this BULLSHIT!!!! This is such a slap in the face to all the shareholders and subscribers, good people who, contrary to some of the cynical assholes who love to bash the investers, supported this venture for the love of the service. Not everyone is a get rich quick schemer like some of these jerfoffs try to depict the typical satellite radio invester. Since when is it against the law to invest in a company and have a reasonable expectation of profiting from it. The invester is taking the risk, you judgmental fucks, and all of you pussies who like to say “I told you so” can go fuck yourselves. There is nothing more pathetic then hitting a guy when he’s down. You people who get a thrill bashing others who are down and out are gutless pieces of shit as far as I’m concerned. Go pick on Mel and the rest of managment. Better yet, go bash that imbecile President Bush. Under his watch, the most criminal and damaging of all merger delays EVER cost this company millions and millions of dollars, and a chance to get off to a decent start. Plus which, we have an entire generation of young people who don’t think radio is cool; they are all obsessed with their cell phones and their I-pods and their text messaging. They know nothing about good music, good sound, or good anything. We live in a country that is so stupid that a moron like George W Bush gets elected not once, but TWICE!!! What this has to do with anything I don’t know – I’m just really fucking sick and disgusted over the whole thing – I can’t even think straight. One last thing; Mel, for the love of God, could you PLEASE come out of your cave, or penthouse, mansion or wherever you are hiding and say something to us!!! Write a message in the sand if you have to. Smoke signals…. anything!!! You are pissing off an awful lot of people with your disappearing act, and if you don’t do or say something real soon you are going to see cancellations by the thousands. Or worse. The ball is in your court, pal.
I was in a decent mood today then I read Friggin’s post which reminded how Cramer pumped this stock up on his show saying it would be an $8 stock if they merged, then a $6 dollar stock, then a $4.00 stock and then the infamous better sell this stock since the merger took too long B.S.!!!
Brandon and Tyler:
Sure would like to learn that the special guest on the next SIRIbuzz radio show is Mel (with his legal counsel in his ear is fine) or any of his key C’s (CFO especially), or the canned CitiG analyst Tony, or that GS hack Mark. No more litigant wanna-be’s, whiners and other time wasters on the show, PLEASE. OR … I’d like to see BuzzRadio air thoughts about the stock coming from an interested, bona fide investigative journalist from a reputable pub such as the WSJ, IW, Barrons, or the like. While the dialogs on this board and the radio show are entertaining, I seek facts at a critical time (Sell, Hold, Buy?). At .25 centavos SIRI is a dark joke for those of us that got in and averaged down based on what have been leveled as executive lies. I remain on hold, avg’d down to 1.15 on a relative bucket load of shares–and very disappointed in Sirius XM management. I know they can do better and they damn well should for the coin they pocket. Further alienating a massive number of forlorn shareholders/subscribers is not smart. Mel, if he has the moral courage, should accept an opportunity to come on the show with some rules prearranged of course and answer some of the charges made against him and his circle. Hearing him provide candid answers to legitimate questions on your show could turn my sentiment positive, and it could have a much-needed positive effect at a far broader level. It could not do much worse to what already has been to the stock’s value. On the other hand, I will expect the worst if Mel continues to skulk in the shadows until the shareholder meeting (by which time SIRI may well be on the pink sheets). Brandon and Tyler, if you truly want to represent us longs then at least contact and offer Mel the invite. If you could swing the event, give us lead time to prepare questions. We could submit our questions ahead of time to you by email. If he accepts, then on the show one or, preferably, both of you could get some answers directly from Mel on our behalf. Compiling and sending him questions in advance would help him prepare to respond and feel more comfortable. The show could even exclude or limit callers’ questions to limit the risk of someone hijacking the show (I’m thinking Hartleib or or someone else with an agenda–althought they too could submit questions in advance.) You could screen for questions in common and boil them down to a set that can be asked and answered within the show’s time limit. You could determine the top five to 10 questions that longs most want answered, prioritize them and ask them in priority order so we get answers to the most important ones before time expires on the show. I believe that all of us greatly want to know WTF Mel WILL do move SIRI north. Will you accept the mission? If no, then try to get one of the other guests suggested above. (This tape self destructs in five seconds….)
SXMInvestor
Sure it is a nice rise when every one else went down.
The question is it done by shorts to have a rise then short and take it down again, like they did when went up from .70 to 1.00, then came crashing down again,
OR is it because some has insider news on refinance or buyout?
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….