WorldSpace looks to increase DIP loan borrowings, extend maturity

By Caroline Salls

Pittsburgh, Feb. 11 - WorldSpace, Inc. requested court approval to increase its debtor-in-possession facility borrowing by $2 million and extend the DIP loan's maturity to March 1, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said it needs the increased borrowing and maturity extension so it can complete the asset sale process and continue operations.

According to the motion, DIP facility lender Liberty Satellite Radio, Inc. has indicated an interest in exploring a strategic transaction with WorldSpace.

However, the company said it would not have enough cash to meet its payroll and other obligations while it finalizes an asset purchase agreement with Liberty under the current financing terms.

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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