Bridge loan note holders have agreed to give WorldSpace Satellite Radio an extension, until a week from tomorrow, to pay $19.86 million and all accrued interest due on the notes. US-based WorldSpace, which operates only overseas, issued another pile of warrants in exchange for the extension.
All of the notes are held by four entities. They’ve now been granted 1.5 million warrants to buy WorldSpace stock for $1.55 per share anytime over the next five years. And they’re still due to be paid $19.86 million plus interest next week. The four investment funds got warrants for five million shares the middle of last month when WorldSpace reached an agreement to restructure about $90 million worth of debt. Those warrants were also at $1.55 per share. That’s no longer a bargain. WorldSpace stock fell 17.1% yesterday and closed at $1.55.