WorldSpace, Inc. Gains Access to $2M in Interim Dip Financing and Commences Sale Process
22 Outubro 2008 - 4:35PM
Business Wire
WorldSpace�, Inc. (NASDAQ:WRSP) a leading provider of satellite
radio services outside the U.S., today announced it has received
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. The Company, 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. The Bank Street Group LLC (www.bankstreetgroup.com)
has been appointed as the Company�s financial advisor in support of
the sale and/or restructuring process and all interested parties
should contact Bank Street (Gary Grant, ggrant@bankstreetgroup.com
or Richard Lukaj, rlukaj@bankstreetgroup.com) for further
information. In other announcements, WorldSpace 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.
About 1worldspaceTM Based in the Washington, DC metropolitan area,
1worldspaceTM is the world's only global media and entertainment
company positioned to offer a satellite radio experience to
consumers in more than 130 countries with five billion people,
driving 300 million cars. 1worldspace award-winning programming
provides subscribers with a combination of news, sports, music,
talk and entertainment, as well as brand-name content and
educational programming. Leading brands from around the globe found
on 1worldspace include the BBC, Absolute Radio (formerly Virgin
Radio UK), and RFI. 1worldspace satellites cover two-thirds of the
earth and enable the Company to offer a wide range of innovative
services for enterprises and governments globally, including
distance learning, alert delivery, data delivery, and disaster
readiness and response systems. 1worldspace is a pioneer of
satellite-based digital radio services and was instrumental in the
early development of the technology infrastructure used today by XM
Satellite Radio. For more information, visit www.1worldspace.com.
Forward Looking Statements This press release may contain certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based on management's current expectations or beliefs about future
events and financial, political and social trends and assumptions
it has made based on information currently available to it. The
Company cannot assure that any expectations, forecasts or
assumptions made by management in preparing these forward-looking
statements will prove accurate, or that any projections will be
realized. Such forward-looking statements may be affected by
inaccurate assumptions or by known or unknown risks or
uncertainties. Actual results may vary materially from those
expressed or implied by the statements herein. For factors that
could cause actual results to vary, perhaps materially, from these
forward-looking statements, please refer to the Company's Form
10-K, filed with the Securities and Exchange Commission, and other
subsequent filings. Forward-looking statements contained herein
speak only as of the date of this release. The Company does not
undertake any obligation to update or revise publicly any
forward-looking statements, whether to reflect new information,
future events or otherwise.
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