New Worldspace’s Samara offers to quit -
Worldspace’s Samara offers to quit
Chris Forrester, on 21-09-2008
Worldspace’s share price rocketed on Friday afternoon (Sept 19) from about 93c to $1.71, perhaps spurred by the news that Noah Samara (pictured, left) might step down from the business, and that a complete restructuring was underway, offering just a glimpse of light at the end of what has been a very dark tunnel.
Worldspace has already mortgaged just about all of its assets, is not paying staff, and has missed key debt payment obligations. However, Worldspace’s Sept 19 announcement refers intriguingly to “the satisfaction of certain conditions, which the Company believes will be satisfied before close of business on Sept. 19, 2008.” No news has yet emerged, but here are the key points from Worldspace’s announcement:
First point, CEO Noah Samara has managed to roll-over the Bridge Loan Notes and Convertible Note obligations, due to be paid in part last Monday (Sept 15), for another few days (Sept 25). Worldspace is then wholly obliged to pay $19.97m plus outstanding interest.
Second, in the meantime the Company is working on developing a comprehensive operational and financial restructuring plan for addressing both its immediate and longer term financing requirements. The Company intends to present the plan to the Debt and Loan Note holders on or before Sept 25 “and to seek their cooperation in facilitating the implementation of the plan or an alternative plan”.
Third point is that Samara has agreed to use its “reasonable best efforts” to find someone to act as Chief Restructuring Officer by Sept 30.
Fourth key point, and perhaps the most important, is that if Worldspace does not pay ALL the amounts due under the Bridge Loan Notes on or before Sept 25, he will – “if requested” – step down from his position as chairman and CEO although he may remain a director.
Fifth point is that Worldspace has retained The Bank Street Group (which specialises in corporate restructuring) as its advisors, and to examine the general position of liquidity.