Liberty closing in on Worldspace

[khurramdar]

Liberty closing in on Worldspace     
Written by Chris Forrester  
Wednesday, 27 January 2010 05:43
Liberty Satellite Radio is wrapping up its purchase of Worldspace. Documents filed before a US Bankruptcy Court show that an agreement has been reached.

Liberty has, to date, paid a total of US$19.6m to keep Worldspace afloat.

A filing to the US Bankruptcy Court says that Liberty has paid in another $1m to fund payroll and other obligations for Worldspace. “The Debtors [Worldspace] hope that that such funding will provide a bridge to a strategic transaction between Liberty and the Debtors,” said the filing, adding that the purchase is the Debtors’ “best [and perhaps only] hope of confirming a plan and making distributions to creditors”.

January’s bill for running costs, including liquidation costs for its South African operation, amount to $848,823. Worldspace India is shown as costing $42,000 in terms of its “January payroll”.

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