Bad News for Satellite Radio; WorldSpace Files for Bankruptcy
By Digital Media Alexandra Osorio.

Global satellite radio provider WorldSpace has now filed for bankruptcy, a potentially bad omen for Sirius XM Radio.  The long-running WorldSpace aimed to bring satellite-based radio into markets like India, as well as other underserved regions like Africa.  That plan also included a European rollout, though a debt overhang and troubled revenue stream has instead prompted a Chapter 11 filing with the United States Bankruptcy Court in Delaware.

The bankruptcy protection comes at a difficult time.  The company, now operating under the name 1worldspace, pointed to a steep debt refinancing challenge.  A $13 million, 90-day lifeline is currently being extended by creditors, a window that will allow the company to liquidate or otherwise repay its obligations.  "The financing facility is expected to enable the company to continue to pay salaries of critical employees and continue operations which are critical to preserving the value of its core assets through the term of the facility," the company stated.  Shares of WorldSpace (WRSP) ended at 22-cents on Monday trading.