WorldSpace gets OK to increase DIP loan borrowings, extend maturity

By Lisa Kerner

Charlotte, N.C., Feb. 18 - WorldSpace, Inc.'s request to increase its debtor-in-possession facility borrowing by $2 million and extend the DIP loan's maturity to March 1 was granted interim approval, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

A final hearing is scheduled for March 5.

When making its request, 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. indicated an interest in exploring a strategic transaction with WorldSpace.

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

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.

© 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.