Go Back   Eurocardsharing > General Discussions > General Satellite News > Latest Satellite News

Latest Satellite News Discussion, Update Worldspace Directors quit at General Satellite News forum; Worldspace Directors quit Worldspace has once again escaped the executioners knife for a few extra days, obtaining an extension from ...

LinkBack Thread Tools Display Modes
Update Worldspace Directors quit
Bacteria's Avatar
Posts: 96,015

Level: 124 [♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥♥ Bé-Yêu ♥]
Life: 4638 / 4638
Magic: 32005 / 104839
Experience: 68%

Thanks: 1,107
Thanked 5,578 Times in 1,419 Posts
Join Date: Oct 2006
Age: 37
Update Worldspace Directors quit - 08-June-2008, 15:10

Worldspace Directors quit

Worldspace has once again escaped the executioners knife for a few extra days, obtaining an extension from its May 31 date when it was due to repay $17.7m to its creditors. The broadcasters note holders have extended the repayment period on its bridge-loans by 30 days to June 30.
However, the news seems to have precipitated (perhaps entirely coincidentally) the departure of two directors. Dr Michael Nobel quit without giving a reason, as did Dr Frank Juergen Richter. Both resignations were immediate. Dr Nobels credentials are flawless as chairman of the Nobel Family Society, and a senior consultant to UNESCO. Dr. Richter is founder/president of Horasis-The Global Visions Community, incorporated in Geneva, Switzerland. Prior to founding Horasis, Dr. Richter was director of the World Economic Forum, in charge of Asian affairs.

Noah Samara, Worldspaces founder, Chairman and CEO, is not called Houdini for nothing, and this latest extension gives him barely four fresh weeks of wriggle room in an attempt to again escape financial meltdown. Samara, late on Wednesday, said the cash needs at Worldspace were challenging.

The official statement said: Under the terms of the agreement, the note holders have agreed to defer until June 30, 2008 the Companys obligation to pay $17.7m in principal amount of the Bridge Loan Notes plus accrued but unpaid interest due on the Bridge Loan Notes and Convertible Notes, and to forbear exercising their rights and remedies with respect to the payment default.

This agreement gives the Company time to bring in the funds already committed to it and to raise new funding. While the agreement accelerates payment of the remaining outstanding amount of the Bridge Loan Notes and the Convertible Notes, such accelerated pay down of the Notes this year will remove capital structure restrictions, which would have otherwise remained until June 2010. Our cash needs are challenging, but we are working very hard to address this in order to take full advantage of the milestones we have achieved in Europe, including licenses from Germany and Switzerland, and successful on-the-ground testing of our service in Italy, where we expect to launch Europes first satellite radio service as early as 2009.

The fresh agreement between Worldspace and its note holders requires the principal amount and any interest to be paid in full by July 31.

As we hinted in our article in yesterdays issue, Worldspace is down to the wire in terms of its available cash. It must put new funds in place, not just to stay afloat itself but also in the shape of fresh funding to build out and exploit the licenses it has won in Italy and Germany.

The market took the news in a positive fashion, marking Worldspaces stock up from $1.58 to $1.69 in later trading.
Reply With Quote


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Forum Jump

ECS on RSS ECS on Twitter ECS on Facebook ECS on Youtube
Follow us on:

Powered by vBulletin
Copyright 2002 - 2010, Jelsoft Enterprises Ltd.
SEO by vBSEO ©2011, Crawlability, Inc.