Gee, who saw this coming? In what can hardly be called a surprise, ailing satellite radio provider WorldSpace Inc. has filed for Chapter 11 bankruptcy.
Its board determined the bankruptcy filing was necessary for the company to raise sufficient funds to repay its senior secured notes and convertible notes by means of either a sale of the company or its assets, or a recapitalization of the company.
WorldSpace listed assets of $307.4 million and liabilities of $2.12 billion. The company received a cash infusion of $40 million earlier this year.
It says it will continue to operate and to pay its employees, but the company has failed to pay some of its workers for two months, causing "significant employee attrition," WorldSpace CEO Noah A. Samara said in court papers. The company owes 50 "critical employees" $1.35 million in back pay.
"As a result of WorldSpace's growing concern regarding its inability to make timely payments to critical employees and other essential creditors, WorldSpace determined that it is in its best interests and the best interests of its subsidiaries and stakeholders to file these chapter 11 proceedings," said Samara.
The company is asking to secure the bankruptcy loan of $13 million and use some of that funding to pay its employees. Without it, the remaining critical employees will likely depart, which would "impair" WorldSpace's ability to operate the satellites, Samara said.
[Wall Street Journal]
Meh. Surprised it took this long...
How long until SiriusXM make the same announcement?
I guess that means U-Pop won't be sticking around long.
I give it until the end of next year before their announcement is made, if they aren't bought first.
Soon - very very soon.
Notice the silence on the Q3 numbers? The silence is deafening. First no results release then massive dilution starting with 60,000,000+.
Not a good sign.
SiriusXM will be releasing the same very soon.
SiriusXM files for bankruptcy
Gee, who saw this coming? In what can hardly be called a surprise, ailing satellite radio provider SiriusXM has filed for Chapter 11 bankruptcy.
Its board determined the bankruptcy filing was necessary for the company to raise sufficient funds to repay its senior secured notes and convertible notes by means of either a sale of the company or its assets, or a recapitalization of the company.
Neither Worldspace nor SiriusXM will find a bank in the world stupid enough to lend them the cash to refinance all the debt they have. The satradio experiment is OVER.
Bad Economy+ Growth of Wi-Fi= death of Satellite radio.
if SuriusXM goes under then people will wake up and buy things like Laptop Computers, Cell Phone/MP3 players with Wi-Fi and maybe Radios with built in Wi-Fi connections to stream radio stations all across the world.
and in 2009 the Analog TV signals will become home to Wi-Fi signals after Febuary 17, when DTV becomes the standard for TV watching Over the Air wise.
plus people with DirecTV or Dish Network could see Music Choice or whatever music service for Cable/Satellite TV come to their service.