Update Worldspace’s partner objects to Samara deal -
Worldspace’s partner objects to Samara deal
The Delaware Bankruptcy Court on March 20 approved the sale of pay-radio broadcaster Worldspace’s assets to Yenura, a company controlled by Worldspace’s founder Noah Samara. New Satellite Radio (NSR), Worldspace’s Italian partner in the plan to launch a Worldspace service over Europe, has objected to the settlement. Their objection could impact the Yenura deal.
Yenura’s formal acquisition is scheduled to close on July 31. Specifically, NSR is objecting to the plan which would have seen a cap of just $500,000 fixed for any potential payments due to claimants such as NSR, WorldSpace Italia and WorldSpace Europe Holdings. NSR, in a statement to the court filed on April 22, says had it not been for NSR’s direct intervention the Yenura purchase price would have been $25m, not the $28m it is now paying. NSR says having this $500,000 cap in place may also violate the Bankruptcy Code, and that releasing Noah Samara (and Mr Salah Idris, his Yenura co-shareholder) from any further obligations is “improper”.
NSR says it has paid $130,000 to WorldSpace Italia since the start of this legal action, and is contractually obliged to continue funding WorldSpace Italia insofar as WorldSpace Inc has failed to fund WorldSpace Italia, “as required by the existing and non-rejected Partnership Agreement between NSR, WorldSpace Inc and WorldSpace Europe Holdings ApS.” NSR alleges that there’s also a discrepancy between the amount paid over to WorldSpace Italia by WorldSpace Inc (while the Chapter 11 bankruptcy action was in force). NSR says WorldSpace says it has paid over $410,000 to WorldSpace Italia. NSR alleges that “approximately $360,000” was actually paid.
The Delaware Court will hear this application, amongst others, on April 27.