Worldspace UK goes bust
Chris Forrester ©RapidTVNews
| 16-11-2008
Worldspace (UK) Ltd called in the liquidators on Friday Nov 14. The action means an immediate suspension of the Afristar channels that were being transmitted from London by WRN.
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The move also means that Worldspace UK’s few remaining staff have been
let go, according to informed sources. London employees have received
no salaries since September.
Telemetry, care and control of Afristar are still being carried out.
Insiders suggest that Afristar is still carrying some radio channels
beamed up from South Africa.
Worldspace UK is a separate operation to Worldspace Inc., which is
currently in Chapter 11 bankruptcy protection. Our sources suggest that
Worldspace’s London assets (transmission equipment and so forth) had
already been formally seized ahead of the liquidation because
Worldspace is in default on payments.
A Creditors Meeting will be held later in November.
Meanwhile, Worldspace Inc. will be de-listed from the NASDAQ market.
Its shares had been suspended from trading on October 30. The NASDAQ
action will come into effect in 10 days.
Details have also emerged as to the fees being paid by Worldspace to
its lenders for the loan of up to $13m during its Chapter 11 bankruptcy
protection. Worldspace has borrowed up to $13m in ‘Debtor in
Possession’ (DIP) from four lenders: Citadel Energy Holdings LLC,
Highbridge International LLC, OZ Master Fund Ltd., and Silver Oak
Capital LLC. Worldspace has to pay back 102% of the overall amount
borrowed, and pay interest of 12% over the current official Eurodollar
rate.
Last week Worldspace’s shares were trading in the off-market at between
4c-6c (and in some volume) and giving the company a theoretical market
capitalisation of $1.7m.
© Rapid TV News 2008
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