MUMBAI: Satellite radio broadcaster WorldSpace Inc, which filed for bankruptcy protection in October 2008, has won court approval to sell itself to a company controlled by founder and chief executive Noah Samara.
Samara’s Yenura Pte. Ltd. will pay $28 million for substantially all of WorldSpace’s assets and its U.S. subsidiaries, WorldSpace Systems Corporation and AfriSpace Inc, says an official release.
The sale still needs regulatory approval.
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Silver Spring-based WorldSpace, whose satellite broadcasts are heard in Africa and Asia, was working to launch its services in Europe when the weight of debt led to its bankruptcy filing. The money-losing company had been operating with debtor-in-possession financing from its creditors since October.WorldSpace, Inc.
Yenura is purchasing the assets pursuant to an asset purchase agreement for a total purchase price of $28 million cash, the assumption of certain liabilities, and the subordination and release of certain claims. The parties expect the sale to close following the issuance of necessary regulatory approvals.
Yenura is a company controlled by WorldSpace founder, Chairman and Chief Executive Officer Noah A. Samara.
WorldSpace last reported about 171,000 subscribers and had hoped to launch its first European service in Italy sometime this year.
