WorldSpace seeks approval of $13 million DIP commitment

By Caroline Salls

Pittsburgh, Oct. 27 - WorldSpace, Inc. has secured a commitment for $13 million in debtor-in-possession financing from Energy Holdings LLC, Highbridge International LLC, OZ Master Fund, Ltd. and AG Offshore Convertibles, Ltd., according to a Saturday filing with the U.S. Bankruptcy Court for the District of Delaware.

The facility includes the $2 million of emergency funding that was approved by the court earlier this month. The company is also requesting interim access to $6.5 million of the DIP loan.

The DIP facility will mature in 90 days.

Interest will be Libor plus 1,200 basis points.

WorldSpace will pay a fee of 2% of the total commitment amount.

A hearing is scheduled for Oct. 28.

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.

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