WorldSpace seeks third exclusivity extension to prepare plan

By Alice Popovici

New York, Oct. 30 - WorldSpace, Inc. requested an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company wants to extend its exclusive plan-filing period to Jan. 31 from Oct. 31 and the solicitation period to April 1 from Dec. 30.

A hearing is scheduled for Dec. 2.

The company said it has devoted "significant resources" to the sale of substantially all its assets, as well as dealing with employees, customer, financial and other issues.

"Given the size and the complexity of these Chapter 11 cases, the fact that the [company's] industry is regulated and therefore a sale would be subject to regulatory approvals, and the business of restructuring matters that have been and still must be resolved, neither the [company] nor any other party in interest have been in a realistic position to create and build acceptance for a plan to date," the motion states.

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, 2008. Its Chapter 11 case number is 08-12412.

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