WorldSpace granted interim access to $2 million of DIP financing, hires restructuring officer

By Jennifer Lanning Drey

Portland, Ore., Oct. 22 - WorldSpace, Inc. obtained interim approval from the U.S. Bankruptcy Court for the District of Delaware to access up to $2 million of its up to $13 million debtor-in-possession financing, according to a company news release.

The interim funding will allow the company to meet payroll obligations to critical employees and begin a process to sell the company or its assets, according to the release.

WorldSpace said it has begun a process to market and sell the company or its assets or complete an alternative restructuring transaction.

The Bank Street Group LLC has been appointed as the company's financial adviser.

WorldSpace also announced Wednesday that it has appointed Robert Schmitz of Quest Turnaround Advisors LLC as its chief restructuring officer.

DIP loan details

As previously reported, WorldSpace is negotiating the terms of up to $13 million in DIP financing from Citadel Structured Products, Inc., Highbridge International LLC, Oz Master Fund, Ltd. and AG Offshore Convertibles, Ltd. that is expected to give WorldSpace enough liquidity for 90 days in order to find a buyer for its assets.

The emergency DIP loan will mature in 90 days.

Interest will be Libor plus 1,200 basis points.

WorldSpace, based in Silver Spring, Md., has established an operational satellite-based digital radio system, commonly known as Digital Audio Radio Service, and is a licensed DARS provider. The company filed for bankruptcy on Oct. 17, and its Chapter 11 case number is 08-12412.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.