Is it all over for Worldspace?
Troubled satellite radio broadcaster Worldspace is seemingly out of cash. Sources within the company say senior staff have already forfeited at least two salary payments, and this coming Tuesday’s payroll will again evidently have problems.
Another source says that CEO Noah Samara last week held an all-staff meeting, telling them: "We just need funding and execution." One source stated that he has been repeating much the same mantra for more than eight years.
Worldspace, for what seems the umpteenth time, is again talking to its bridging debt-holders about rolling over its repayment obligations to them, this time until July 31. The original binding "Mandatory Redemption Date" for the debt was May 31, then June 30, then July 9, all of which were missed. But it is now paying a crippling rate of interest for missing its repayment obligations.
Bit by bit Worldspace’s debt-holders are winning large chunks of Worldspace because of its default in repaying the assorted loan-notes. However, Nasdaq rules limit the amount of debt and warrants that Worldspace can convert into shares to a total of 19.9% of the firm’s issued Class A shares unless approval is given by the company’s shareholders. Hence Worldspace has to call a special meeting to be held no later than August 15 to approve the move.
Is it all over for Worldspace? | Indian Televisionpoint News
Troubled satellite radio broadcaster Worldspace is seemingly out of cash. Sources within the company say senior staff have already forfeited at least two salary payments, and this coming Tuesday’s payroll will again evidently have problems.
Another source says that CEO Noah Samara last week held an all-staff meeting, telling them: "We just need funding and execution." One source stated that he has been repeating much the same mantra for more than eight years.
Worldspace, for what seems the umpteenth time, is again talking to its bridging debt-holders about rolling over its repayment obligations to them, this time until July 31. The original binding "Mandatory Redemption Date" for the debt was May 31, then June 30, then July 9, all of which were missed. But it is now paying a crippling rate of interest for missing its repayment obligations.
Bit by bit Worldspace’s debt-holders are winning large chunks of Worldspace because of its default in repaying the assorted loan-notes. However, Nasdaq rules limit the amount of debt and warrants that Worldspace can convert into shares to a total of 19.9% of the firm’s issued Class A shares unless approval is given by the company’s shareholders. Hence Worldspace has to call a special meeting to be held no later than August 15 to approve the move.
Is it all over for Worldspace? | Indian Televisionpoint News