WorldSpace, the ailing international satellite radio service, has received a much needed cash infusion for up to $40 million of subordinated financing.
The financing facility comes from a company called Yenura Pte. Ltd. - a company that is conveniently controlled by Noah Samara - the chairman and CEO of WorldSpace. Under terms of the facility agreement, Yenura will make up to $40 million available to WorldSpace - who must be draw upon the money on or before January 31, 2008.
This cash infusion will help in WorldSpace's preparations for the launch of its European mobile service in the Italian market and business development activities in selected markets. Meanwhile WorldSpace is continuing to look for additional financing from a variety of sources, including existing and new investors.
WorldSpace also announced it had secured a waiver of certain pre-payment obligations owed to the holders of its existing debt.
Now here's where it gets interesting:
Yenura is a "special purpose entity" established by both WorldSpace CEO Noah Samara and an initial investor in WorldSpace, Salah Idris. That "special purpose" is to invest in WorldSpace, the company reported. Samara holds all of the voting shares in Yenura. But Idris, through his ownership of non-voting shares, holds the major economic interest in Yenura.
Back in 1999, Salah Idris had a pharmaceutical factory he owned in the Sudan destroyed by United States cruise missiles (pictured). U.S. officials said they suspected Idris' factory of making chemical weapons and was suspected to be "associated with the bin Laden network". But Salah Idris has always denied any connection with Osama bin Laden, and filed suit against the U.S. government in federal court over the bombing. Later, the U.S. Treasury unfroze Idris' bank accounts. [BBC]
The involvement of Idris, as well as other initial WorldSpace backers, including Saudi investors Khalid Bin Mahfouz and Mohammed H. Al-Amoudi, had been the subject much scrutiny back when WorldSpace went IPO.
All are Saudi Arabian citizens and "have been the subject of allegations that they and/or charities they were involved in have supported terrorism, and three of these investors were also named, along with a number of Saudi Arabian government officials and prominent Saudi Arabian citizens, in civil actions brought on behalf of victims of the September 11, 2001 terrorist attacks on the United States, which actions also contain allegations that certain of such investors were involved in charities that supported terrorism," the company noted in a SEC filings [Wall Street Journal].
But none of the men, including Idris, own shares in WorldSpace or have any voting control according to WorldSpace [Washington Post].
That is... directly.
It's the perfect idea! No need to freeze assets of suspected terrorist leaders. The best way to bankrupt and topple these Saudi investors and potential terrorist backers is just to let them invest in a satellite radio company.
This company will burn through that money in a week, leaving them to hold the bag.
The other potential conspiracy theory is that these guys know full well that WorldSpace won't last long, so they are lending money to the company, and using the satellite assets as collateral. Then when the company goes under, these guys take over the satellites on the cheap, and maybe they can use the satellites for some sinister purpose.
I like Greene's conspiracy theory.
Seriously though, I wish the company would succeed or merge with a more successful company (like Apple)
Only $40 million? Sirius or XM could snort that in a couple days on bonuses alone.
I hope if the merger does not go through Worldspace purchases XM...!!!
Moe, it's not a potential conspiracy theory, it is a real theory: The sats are used right to support Al Qaeda and their next attack on the US.
Let's not forget where the Bush family fortune came from.
Investments in Nazi companies leading up to WWII led to the US Gov't paying off Prescott Bush for control of his German companies so that it could attempt to stop the war machine.
Look what it's gotten us!
GO WS GO!!!
I have a better conspiracy theory.
Its a US/Saudi joint venture on a radio, weather and poorly invested money control device. lol Or to replace the "dud" sat that was shot down recently.
From http://en.wikipedia.org/wiki/Silver_Spring,_Maryland
"Downtown Silver Spring is also home to the National Oceanic and Atmospheric Administration (NOAA), a branch of the United States Department of Commerce incorporating the National Weather Service; the American Nurses Association; and numerous real estate development, biotechnology, and media and communications companies." I add that Silver Spring, MD is also equidistant between CIA and NSA headquarters.
I found this post while searching to see if WRSP would benefit from the merger terms.
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