The latest forbearance agreement with lenders gave WorldSpace until yesterday to repay $19.97 million plus interest owed on its bridge loan notes. If it was not possible to make that payment, founder Noah Samara agreed to step down from his positions as CEO and Chairman of the Board if asked to do so by the four holders of the bridge loan notes.
As the satellite radio company struggles with its balance sheet, it has agreed to use its best efforts to hire a Chief Restructuring Officer acceptable to the note holders by the end of this month. It has also retained The Bank Street Group as its restructuring advisor.
WorldSpace, which recently adopted the operating name 1worldspace for its satellite radio service, is US-based by operates its satellite radio services exclusively overseas.
RBR/TVBR observation: You won’t find a friendlier, more engaging person than Noah Samara. But being a great guy doesn’t pay the bills. From the get-go, the business model for WorldSpace seemed even more far-fetched than those of Sirius and XM. Now we wonder what the creditors are going to do with those expensive satellites serving, as of the end of Q2, a mere 171,657 receivers worldwide.