International satellite radio company WorldSpace remains in Chapter 11 and its future is uncertain. In the latest development, the company’s debtor-in-possession lenders have nixed the pending deal to sell WorldSpace to a company headed by CEO Noah Samara.
Samara’s company, Yenura Pte. Ltd., defaulted on payments, according to the announcement made Thursday by WorldSpace:
“WorldSpace, Inc. (“WorldSpace”) announced today that the asset purchase agreement providing for the sale of substantially all of its assets to Yenura Pte. Ltd. (“Yenura”) had been terminated by WorldSpace’s debtor in possession lenders (“DIP Lenders”). The DIP Lenders exercised their right to terminate the Yenura purchase agreement after Yenura had defaulted in the payment of certain amounts payable thereunder and had failed to remedy such defaults within applicable cure periods. WorldSpace is in discussions with its creditor constituents regarding, and is reviewing, its strategic alternatives in light of the notification of the Yenura purchase agreement termination.”