Chennai, Oct 21: WorldSpace Inc filed for Chapter 11 bankruptcy protection after repeated failures to meet debt obligations and to pay its employees. They even failed to obtain new financing.
The Maryland-based company, which broadcasts its satellite radio services to more than 170,000 in Europe, Africa and Asia listed assets of $307.4 million and liabilities of $2.12 billion. WorldSpace is present in over 130 countries worldwide. It launched its India services in 2000 with over 35 free-to-air channels. In 2002, it converted a few of its channels to pay and went completely pay in 2004. At the end 2007, it had a customer base of over 1.6 lakh in India.
Under the bankruptcy WorldSpace will continue to operate. The holders of the Company"s existing senior secured and convertible notes have agreed to provide (with stipulations), a financing facility of up to $13 million. The financing should enable the Company to make payroll with employees needed to continue operations.