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The EDGAR filings are very old...nothing new. Latest I could find from BK court shows that the judge approved the order for Chapter 7. Not sure what happens now since there's virtually no money left. So, looks like 'snake eyes' for our Vegas bets.
If this thing doesn't emerge from BK (which is the likely outcome obviously), there's no doubt the cash was drained and shareholders and creditors defrauded. I said this months ago, and here we are. Quest Turanaround Advisors(Smitz) charging $50k per month! All the lawyers charging thousands each month. For what? And, good ole Noah, runs off with the assets for chump change, leaving shareholders and creditors with zip. Now, that's how you spell F R A U D. And, what's up with the US Bankruptcy Court? Were they asleep for this nonsense? Anyone who invested a lot of money has to be really angry. I'm thankful my "investment" was more like a Vegas bet, but some on this board have indicated they invested big money. They should think about legal action to get clawback on the looted money. All of those who drained this company of its cash have assets worth chasing (other than Noah).
Check this out:
http://en.wikipedia.org/wiki/TerreStar-1
EchoStar owns this thing now.
Hilarious! Noah is selling something he doesn't have rights to sell.....again. Perhaps he'll change the buttons and t-shirts for donations to "I bought another bag of sh&t from Noah!"
LOL!!!! I love this guy.
Classic scam. Create a webpage with pictures of underprivileged people and promise to uplift their lives by providing X. This stuff is so awful, because it not only defrauds people, but also hurts efforts of legitimate charities which REALLY help people who need it.
If wrspq ultimately does liquidate (and this is not a negotiating strategy to force some kind of action, like the prior threat to de-orbit the two sats), then this case needs to be investigated for fraud. Only a federal inquiry will be able to determine if this BK was legitimate, or a means to siphon funds. A review of the public documents is insufficient to determine the real activity that has occurred to date. If you examine the legal billing documents, they say absolutely nothing about what these law firms were doing on behalf of their "clients". Same with the big invoices from Quest Turnaround Advisors. Nebulous invoices in, real hard cash out. That sounds like fraud to me.
A flim flam artist. He's suckered these people to joining him on a so-called altruistic attempt to provide internet connectivity to underdeveloped countries, but in reality, he's just trying to raise charitable donations to this BS, and will ultimately pay himself during the scam. He's an out and out fraud. This is kind of like companies that sell people their own "star".
Here are the relevant docs from the BK filing yesterday. The parasites drained the accounts down to less than $10k.
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
-------x
Chapter 11
In re:
WORLDSPACE, INC., et al.,1
Case No. 08 - 12412 (PJW)
(Jointly Administered)
Debtors.
-------------------------------------------------x
Objection Deadline: May 30, 2012 at 4:00 p.m. (prevailing Eastern time)
Hearing Date: June 6, 2012 at 9:30 a.m. (prevailing Eastern time)
DEBTORS’ MOTION TO CONVERT CASES FROM
CHAPTER 11 TO CHAPTER 7 OF THE BANKRUPTCY CODE
WorldSpace, Inc. ("WorldSpace"), on behalf of itself and its affiliated debtors
and debtors in possession in the above-captioned cases (collectively, the "Debtors"), hereby
move (this "Motion") this Court, pursuant to section 1112(a) of chapter 11 of title 11 of the
United States Code, 11 U.S.C. § § 101 et seq. (the "Bankruptcy Code") and Rules 1017(f)(2)
and 9013 of the Federal Rules of Bankruptcy Procedures (the "Bankruptcy Rules"), for entry of
an order (the "Order") converting these cases from chapter 11 of the Bankruptcy Code to
chapter 7 of the Bankruptcy Code. In support thereof, the Debtors respectfully represent as
follows:
Preliminary Statement
1. On June 24, 2010, the Debtors completed a sale of substantially all of their
assets to Yazmi USA LLC. The Debtors do not believe that they will be able to propose or
The Debtors in these proceedings, along with the last four digits of each Debtor’s federal tax identification
number, are: WorldSpace, Inc. (2881); AfriSpace, Inc. (3956); and WorldSpace Systems Corporation (0695);
each with a mailing address of 8515 Georgia Avenue, Silver Spring, MD 20910; and WorldSpace Satellite
Company Ltd. (7577), with a mailing address of Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, BVI.
DOCSDE:180254.2 95005-001
confirm a plan in these cases, and are incurring administrative expenses. Based on these
circumstances, the Debtors request that the Court grant the Motion to convert these cases as soon
as possible.
Jurisdiction
2. This Court has jurisdiction to entertain this Motion pursuant to 28 U.S.C.
§§ 157 and 1334. Venue is proper in this District pursuant to 28 U.S.C. §§ 1408 and 1409.
Consideration of this Motion is a core proceeding pursuant to 28 U.S.C. § 157(b).
3. The statutory predicate for the relief requested herein are Bankruptcy
Code section 1112(a) and Bankruptcy Rules 1017(f) and 9013.
Background
4. On October 17, 2008 (the "Petition Date"), each of the Debtors other than
World5pace Satellite Company Ltd. ("SatCo") filed a voluntary petition in this Court for relief
under chapter 11 of the Bankruptcy Code. An official committee of unsecured creditors
(the "Creditors’ Committee") was appointed on October 29, 2008 in the cases of the Debtors
other than SatCo. On May 18, 2010, SatCo filed a petition under chapter 11 of title 11 of the
Bankruptcy Code. On June 1, 2010, the Court entered an order directing that SatCo’s chapter 11
case be jointly administered with that of the other Debtors (Docket No. 1038). The Debtors have
continued to operate their business and manage their properties as debtors in possession pursuant
to sections 1107 and 1108 of the Bankruptcy Code.
5. WorldSpace is a Delaware corporation based in Maryland. On June 24,
2010, the Debtors completed a sale of substantially all of their assets to Yazmi USA LLC
(the "Sale"). Prior to June 24, 2010, WorldSpace and its Debtor and non-debtor affiliates
provided satellite-based radio and data broadcasting services to more than 170,000 (as of
2
DOCS_DE:180254.2 95005-001
June 30, 2008) paying subscribers in ten countries throughout Europe, India, the Middle East,
and Africa. The Debtors and their affiliates operated two geostationary satellites, AfriStar and
AsiaStar, which were owned by SatCo and which were in orbit over Africa and Asia. Another
completed satellite was in storage.
6. The other operations of the Debtors and their affiliates included operating
associated ground systems that provided content to and control satellites, a terrestrial repeater
network to be built out (subject to regulatory approval) in each of the Debtors’ target markets in
order to facilitate a mobile service, and the receivers owned by the Debtors’ customers. The
principal assets of the Business included (i) two completed satellites in orbit, (ii) a satellite in
storage, (iii) related operational ground equipment and intellectual property, and (iv) related
regulatory licenses and various contracts.
7. Following the closing of the Sale, the Debtors completed the process of
resolving transition issues and post-closing obligations under the Sale documents.
8. As of the date of this Motion, approximately $9,975.00 remain in the
Debtors’ estates.
9. The Debtors believe that almost all administrative expenses have been or
on the date of the hearing on this Motion will have been paid, other than Bankruptcy Code
§503(b)(9) claims and certain administrative claims. 2
Relief Requested
10. The Debtors respectfully request that the Court enter an order pursuant to
Bankruptcy Code section 1112(a) converting these cases to cases under chapter 7 of the
Bankruptcy Code.
In addition to the section 503(b)(9), the Debtors have not paid administrative claims filed by Noah Samara,
Hussein Sallam and the Delaware Secretary of State.
DOCSDE:180254.2 95005-001
Basis for Relief
11. Section 1112(a) of the Bankruptcy Code governs the voluntary conversion
from chapter 11 to chapter 7. Section 1112(a) provides that a debtor may convert a chapter 11
case to a case under chapter 7 at any time as of right. Specifically, section 1112(a) states:
The debtor may convert a case under this chapter to one under chapter 7 of this
title unless
(1) the debtor is not a debtor in possession;
(2) the case originally was commenced as an involuntary case under
this chapter; or
(3) the case was converted to a case under this chapter other than on
the debtor’s request.
11 U.S.C. § 1112(a).
12. Section 1112(a), therefore, gives a chapter 11 debtor the right to convert to
chapter 7 unless one of the enumerated exceptions in section 11 12(a)(1)-(3) is applicable.
See, e.g., In re Dieckhaus Stationers of King of Prussia, Inc., 73 B.R. 969, 971 (Bankr. B.D. Pa.
1987) (stating that section 1112(a) "gives a debtor in possession an absolute right to convert,
unless the case is governed by one of the enumerated exceptions"); Abbott v. Blackwelder
Furniture Co., 33 B.R. 399, 401 (W.D.N.C. 1983) ("Congress provided the Chapter 11 debtor
with the absolute right to accomplish voluntary conversion to a Chapter 7 liquidation without
Court approval."); see also Fed. R. Bankr. P. 1017(0(1) and 1017(0(2) (conversion under
section 1112(a) is requested by motion under Rule 9013 but is not to be treated as a contested
matter under Rule 9014).
13. In the Debtors’ cases, none of the enumerated exceptions to Bankruptcy
Code section 1112(a) apply: (1) the Debtors are debtors in possession under sections 1107 and
1108 of the Bankruptcy Code; (2) these cases were commenced by the filing of voluntary
is
DOCS_DE: 180254.2 95005-001
chapter 11 petitions; and (3) these cases were not converted to chapter 11 from another Chapter
of the Bankruptcy Code. Thus, the Debtors are entitled, as a matter of right, to convert these
cases to cases under chapter 7 of the Bankruptcy Code.
14. In addition to the legal right to convert these cases to chapter 7, the
Debtors believe that converting these cases to chapter 7 is in the best interest of their estates and
creditors. The Debtors’ continue to incur administrative expenses in these chapter 11 cases and
have limited cash. Accordingly, the Debtors respectfully request that the Court enter an order
converting these cases from chapter 11 to chapter 7.
Notice
15. Notice of this Motion has been provided to: (i) the Office of the United
States Trustee for the District of Delaware; (ii) counsel for the Committee; and (iii) those parties
who have requested notice pursuant to Bankruptcy Rule 2002 and Rule 2002-1(b) of the Local
Rules. The Debtors submit that, in light of the nature of the relief requested, no other or further
notice need be given.
No Prior Refluest
16. No prior application for the relief sought herein has been duly made by the
Debtors to this or any other Court.
[Remainder ofpage intentionally left blank]
5
DOCS_DE: 180254.2 95005-001
WHEREFORE, the Debtors respectfully request that the Court enter an order
substantially in the form attached hereto converting these cases from chapter 11 to chapter 7 of
the Bankruptcy Code and grant the Debtors such additional relief as necessary and appropriate.
Dated: May 16, 2012 PAC SKI STANG ZJEHL & JONES LLP
I
Laura Davis Jon(BrNo. 2436)
Timothy P. Cairns (Bar No. 4228)
919 North Market Street, 17th Floor
P.O. Box 8705
Wilmington, DE 19899-8705 (Courier 19801)
Telephone: (302) 652-4100
Facsimile: (302) 652-4400
Email: ljones@pszjlaw.com
tcaimspszjlaw.com
F. M14
SHEARMAN & STERLING LLP
Andrew V. Tenzer
Randall L. Martin
599 Lexington Avenue
New York, NY 10022
Telephone: (212) 848-4000
Facsimile: (212) 848-7179
Email: atenzer@shearman.com
randy.martin@shearman.com
Counsel for the Debtors and Debtors in Possession
6
DOCSDE: 180254.2 95005-001
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re: ) Chapter 11
)
WORLDSPACE, INC., et al.,’ ) Case No. 08-12412 (PJW)
) (Jointly Administered)
Debtors. )
Objection Deadline: May 30, 2012 at 4:00 p.m. (prevailing Eastern time)
Hearing Date: June 6, 2012 at 9:30 a.m. (prevailing Eastern time)
NOTICE OF DEBTORS’ MOTION TO CONVERT CASES FROM
CHAPTER 11 TO CHAPTER 7 OF THE BANKRUPTCY CODE
TO: (i) the Office of the United States Trustee for the District of Delaware; (ii) counsel for the
Committee; and (iii) those parties who have requested notice pursuant to Bankruptcy
Rule 2002 and Rule 2002-1(b) of the Local Rules
PLEASE TAKE NOTICE that on May 16, 2012, the above-captioned debtors
and debtors-in-possession (the "Debtors"), filed the Debtors ’ Motion to Convert Cases from
Chapter 11 to Chapter 7 of the Bankruptcy Code (the "Motion") with the United States
Bankruptcy Court for the District of Delaware, 824 North Market Street,
3rd Floor, Wilmington,
Delaware 19801 (the "Bankruptcy Court"). A copy of the Motion is attached hereto.
PLEASE TAKE FURTHER NOTICE that any response or objection to the
relief sought in the Motion must be filed with the Bankruptcy Court on or before May 30, 2012
at 4:00 p.m., prevailing Eastern time.
The Debtors in these proceedings, along with the last four digits of each Debtor’s federal tax identification
number, are: WorldSpace, Inc. (2881); AfriSpace, Inc. (3956); and WorldSpace Systems Corporation (0695); each
with a mailing address of 8515 Georgia Avenue, Silver Spring, MD 20910.
DOCS_DE:180257.1 95005-001
PLEASE TAKE FURTHER NOTICE that at the same time, you must also
serve a copy of the response or objection upon: (i) counsel to the Debtors: Laura Davis Jones,
Esq., Pachuiski Stang Ziehi & Jones LLP, 919 North Market Street, 17th Floor, P.O. Box 8705,
Wilmington, Delaware 19899-8705 (Courier 19801), and Andrew V. Tenzer, Esq., Shearman &
Sterling LLP, 599 Lexington Avenue, New York, New York 10022; (ii) the Office of the United
States Trustee: Mark Kenney, Esq., United States Trustee’s Office, 844 King Street, Suite 2207,
Lockbox 35, Wilmington, Delaware 19801; and (iii) counsel to the Official Committee of
Unsecured Creditors: Andrew I. Silfen, Esq., Schuyler G. Carroll, Esq., Arent Fox LLP, 1675
Broadway, New York, New York 10019, and Henry F. Siedzikowski, Esq., Elliott Greenleaf&
Siedzikowski, P.C., 925 Harvest Drive, P.O. Box 3010, Blue Bell, Pennsylvania 19422, and
Rafael X. Zahralddin-Aravena, Esq., Neil R. Lapinski, Esq., Elliott Greenleaf, 1000 West Street,
Suite 1440, Wilmington, Delaware 19801.
PLEASE TAKE FURTHER NOTICE THAT IF YOU FAIL TO RESPOND IN
ACCORDANCE WITH THIS NOTICE, THE COURT MAY GRANT THE RELIEF SOUGHT
BY THE MOTION WITHOUT FURTHER NOTICE OR HEARING.
[Remainder ofpage intentionally left blank]
2
DOCSDE:180257.1 95005-001
PLEASE TAKE FURTHER NOTICE THAT A HEARING TO CONSIDER
THE RELIEF SOUGHT IN THE MOTION WILL BE HELD ON JUNE 6, 2012 AT 9:30 A.M.
PREVAILING EASTERN TIME (THE "HEARING") BEFORE THE HONORABLE PETER
J. WALSH, UNITED STATES BANKRUPTCY JUDGE, AT THE UNITED STATES
BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE, 824 MARKET STREET,
6TH FLOOR, COURTROOM NO. 2, WILMINGTON DELAWARE 19801.
Dated: May 16, 2012
PAC}{USKISTAGZIEHL & JONES LLP
Laura Davis Jlnes (Bar No. 2436)
Timothy P. Cairns (Bar No. 4228)
919 North Market Street, 17th Floor
P.O. Box 8705
Wilmington, DE 19899-8705 (Courier 19801)
Telephone: (302) 652-4100
Facsimile: (302) 652-4400
Email: Ijones@pszjlaw.com
tcaims@pszjlaw.com
-and-
SHEARMAN & STERLING LLP
Andrew V. Tenzer
Randall L. Martin
599 Lexington Avenue
New York, NY 10022
Telephone: (212) 848-4000
Facsimile: (212) 848-7179
Email: atenzer@shearman.com
randy.martin@shearman.com
Counsel for the Debtors and Debtors in Possession
DOCSDE:180257.1 95005-001
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
---x
In re:
WODSPACE, INC., et al., 1
Debtors.
---------------------------------- x
Chapter 11
Case No. 08-12412 (PJW)
(Jointly Administered)
Hearing Date: June 6, 2012 at 9:30 A.M.
Objection Deadline: May 30, 2012 at 4:00 P.M
(prevailing Eastern time)
DEBTORS’ MOTION TO LIMIT NOTICE RE: DEBTORS’ MOTION TO CONVERT
CASES FROM CHAPTER 11 TO CHAPTER 7 OF THE BANKRUPTCY CODE
WorldSpace, Inc. ("WorldSpace"), on behalf of itself and its affiliated debtors
and debtors in possession in the above-captioned cases (collectively, the "Debtors"), hereby
move this Court (the "Motion to Limit Notice") for entry of an Order limiting notice in
connection with the Debtors’ Motion to Convert Cases from Chapter 11 to Chapter 7 of the
Bankruptcy Code (the "Motion"). 2 The Debtors are concurrently filing the Motion and are
serving the Motion on (i) the Office of the United States Trustee for the District of Delaware;
(ii) counsel for the Committee; (iii) those parties who have requested notice pursuant to
Bankruptcy Rule 2002 and Rule 2002-1(b) of the Local Rules.
Through the Motion, the Debtors are seeking conversion of their cases to cases
under Chapter 7 of the Bankruptcy Code. As described more fully in the Motion, the Debtors do
not have the means to pursue confirmation of their proposed plan of liquidation or to satisfy the
administrative expenses that will continue to accrue if these cases are maintained in Chapter 11.
The Debtors in these proceedings, along with the last four digits of each Debtor’s federal tax identification
number, are: WorldSpace, Inc. (2881); AfriSpace, Inc. (3956); and WorldSpace Systems Corporation (0695);
each with a mailing address of 8515 Georgia Avenue, Silver Spring, MD 20910; and WorldSpace Satellite
Company Ltd. (7577), with a mailing address of Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, BVI.
2 Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Motion.
DOCS_DE: 180289.1 95005-001
The Debtors are unwilling to burden these estates with the expenses that will continue to accrue
without any apparent path to satisfying them.
Relief Requested
By this Motion to Limit Notice, the Debtors request that the Court enter the
proposed order filed herewith: limiting notice of the Motion to (i) the Office of the United States
Trustee for the District of Delaware; (ii) counsel for the Committee; (iii) those parties who have
requested notice pursuant to Bankruptcy Rule 2002 and Rule 2002-1(b) of the Local Rules.
Basis for Relief
With respect to the request to limit notice with respect to the Motion, Rule
2002(a)(4) of the Federal Rules of Bankruptcy Procedure (the "Bankruptcy Rules") ordinarily
requires notice by mail to the debtor, the trustee, all creditors and indenture trustees of "the
hearing on the dismissal of the case or the conversion of the case to another chapter[.]" Fed. R.
Bankr. P. 2002(a)(4). Although a voluntary conversion under section 1112(a) is to be requested
by motion pursuant to Rule 9013 of the Bankruptcy Rules, the Bankruptcy Rules are explicit that
it is not to be treated as a contested matter under Federal Rule of Bankruptcy Procedure 9014, as
to which an opportunity to be heard is required. See Fed. R. Bankr. P. 1017(f)(1) and 1017(f)(2).
The Debtors respectfully submit that it is in the best interests of their estates to limit the notice
required under Bankruptcy Rule 2002(a)(4) to fewer than all creditors in this circumstance where
the Debtors are exercising their right to voluntarily convert under 11 U.S.C. § 1112(a) and where
notice to all creditors would result in unnecessary expense to the estates. The Debtors’ master
creditor matrix includes thousands of addresses, and the additional administrative costs of
2
DOCSDE:180289.1 95005-001
serving the Motion?or even simply notice of the Motion?upon all creditors would be
substantial.
Specifically, the Debtors propose that notice of the Motion be given to (i) the
Office of the United States Trustee for the District of Delaware; (ii) counsel for the Committee;
(iii) those parties who have requested notice pursuant to Bankruptcy Rule 2002 and Rule 2002-
1(b) of the Local Rules. Service on this smaller group of interested parties is reasonable and
appropriate under the circumstances, and parties in interest will not be prejudiced by limiting
notice to the key constituents in the case and the parties that expressly have requested notice in
these cases. Moreover, nothing in the relief requested here would alter the provision of notice by
the Clerk of Court to interested parties of the entry of an order converting these cases to cases
under Chapter 7 pursuant to Federal Rule of Bankruptcy Procedure 2002(f).
Judges of this Court previously have entered orders granting the voluntary
conversion of Chapter 11 cases to Chapter 7 cases based upon the filing of a notice of a debtor’s
election to convert or upon the filing of a request in the form of a motion with limited notice.
See, e.g., In re Monaco Coach Corporation, Case No. 09-10750 (KJC) (Bankr. D. Del. June 22,
2009); In re eToys Direct 1, LLC, Case No. 08-13412 (BLS) (Bankr. D. Del. December 28,
2008); In re Joan Fabrics Corp., Case No. 07-10479 (CSS) (Bankr. D. Del. Nov. 11, 2007); In
re 5-Tran Holdings, Inc., Case No. 05-11391 (KJC) (Bankr. D. Del. May 13, 2005).
3
DOCS_DE: I 80289.1 95005-001
Condusion
WHEREFORE, for the reasons set forth above, the Debtors respectfully request
the entry of the proposed order submitted herewith.
Dated: May 16, 2012 PACSKI STANG ZIEHL & JONES LLP
Laura Davis Jones (Bar No. 2436)
Timothy P. Cairns (Bar No. 4228)
919 North Market Street, 17th Floor
P.O. Box 8705
Wilmington, DE 19899-8705 (Courier 19801)
Telephone: (302) 652-4100
Facsimile: (302) 652-4400
Email: ljones@pszjlaw.com
tcaims@pszjlaw.com
-and-
SHEARMAN & STERLING LLP
Andrew V. Tenzer
Randall L. Martin
599 Lexington Avenue
New York, NY 10022
Telephone: (212) 848-4000
Facsimile: (212) 848-7179
Email: atenzer@shearman.com
randy.martinsheamian.corn
Counsel for the Debtors and Debtors in Possession
4
DOCSDE:180289.1 95005-001
Nothing wrong with that strategy at this point. In terms of going down with the ship, that ship sank two years ago, so, as you say, waiting it out till the bitter end makes sense, in the hope a big strategic move by Liberty saves the day. You never know, and the shareholder money was lost years ago.
Companies in successful and growing sectors go bankrupt all the time. Your underlying assumption is incorrect. It's all about how a company manages itself, and wrspq was a mess. The premise was faulty from the get go. They spent huge investment in building an infrastructure to serve a region where they couldn't get enough subscribers to carry the load. You can argue that it's an untapped market and all that...sure....it is. But, at the time, not so much, and they ran out of time and money. The failure of this company is not based on the technology at all. That's solid, as proven by Sirius XM. But SIRI biz model is very different from the one wrspq had, obviously by the number of subscribers and recent financial performance. WRSPQ was doomed from the start: it over invested, over spent, under marketed, and ran out of gas....and Samara ran away with two orbiting sats.
yes, it did. I believe that was paid back via the asset purchase. Malone's sole remaining exposure is his prior purchase of wrspq debt, but no one knows for how much (cents on the dollar, but how many cents?). If they liquidate, the judge will distribute the remaining cash to the creditors, including Malone. Of course, that's chump change now. Your supposition that Liberty is going to come in for the rescue, to fend off liquidation is certainly possible...as I said earlier today. Anything could happen. NOLs exist, and may have value to Liberty. I still have shares just in case!
yes, the filing is public. Like i said: go to PACER system and you can get all that stuff.
Yup to your comment about the system. That's my point about potential fraud here. But, without inside knowledge, which you can only get by filing a lawsuit (which triggers your right to "discovery"), no way to figure it out from public filings, other than the cash drain.
doesn't work that way. sorry. You can't use the NOLs for an unrelated business. You can't be a candy company and buy this thing and use them. And, the BK judge can't prevent them from liquidating. The various parties to the BK can try to prevent it, but if they don't object...liquidation happens. That's why they filed a motion, and a hearing date is set. So, if YOU want to prevent it, file a motion and fight it. I don't know how much $ you invested, but if it's at a magnitude you have been implying, you should get a lawyer and do something. I haven't invested enough to justify spending more money on attorneys, but if I had invested a few hundred grand, I sure would be fighting this, and not to save the company, but to get to the bottom of this mess and determine if there is fraud. You can't force a reorg without someone to bail it out, so only option is liquidation if no such party exists. The creditors could have tried to force liquidation, but apparently they didn't. Like I said earlier.....there's a tiny chance this is a move to force someone to do something to preserve the NOLs...but that's a real longshot.
correct. not sure of the tax BS, but I think if you've held it for over a year, you can write it off against income, but if not, there's other rules....but I don't know....stuff like writing it off only against other short term gains, crap like that.
deadlines meaningless. The company is liquidating. that's it. Could someone swoop in and rescue it from liquidation to preserve the NOLs....I guess that could happen. But, that's a stretch, even more than the stretch we've been dealing with for 2 years. If you hold your shares till the very very bitter end, you will certainly find out, one way or the other.
Well, no big surprise, and, unfortunately, that's that. This move is to avoid the appearance of fraud, though that's exactly what transpired. By moving to liquidate now, with some money in the bank, they can say they tried to reorg, but it didn't work, so we're pulling the plug to avoid spending all the money.....well.....they spent millions and lined the pockets of bloodsucking attorneys and the so-called "turnaround" company, all for nothing. And, that crook Samara, in a transaction that can hardly be deemed "arms length", walked away with the only assets of real value....orbiting sats and spectrum licenses, for next to nothing, having bankrupted the company, obviously for his own gain. Fraud.
I feel bad for all shareholders, and especially MGTY1.
I believe the asset purchase agreement included spectrum licenses, software, hardware, ground station related hardware, etc. Can't recall. You can use PACER online service, as I suggested earlier, to look at that, as all the docs filed with the BK court are available. Yes, the satellite in storage was not mentioned in that agreement, and it's status as such has been mentioned many times on this board. It most likely still belongs to WRSPQ, however, it's old technology, and if I recall from earlier info, isn't far from end of life. Same for the two orbiting sats now with Samara.
The point is that there aren't any valuable hard assets left. The cost to launch the sat in a shed is probably not worth it considering the age of that sat, but that's just a guess. I really don't know. I imagine Samara knew that, and is probably why he didn't get it in the deal, because he didn't want to pony up more money for it.....aging sat, expensive to launch, and he had limited funds.
This company may be useful for some player as a shell, but that's it. No technology, no patents, no licenses, nothing remains, but the old sat in a shed. All was sold already, for a song, to Samara.
WRSPQ sold its satellites in orbit and related assets to Samara's new investment scheme, months and months ago. The company that remains is merely a corporate shell, with its cash draining to attorneys each month. It could have value based on NOLs, or not. That's the shareholder's only hope.
The comments about worldwide media are irrelevant. WRSPQ owns nothing of tangible value. A global media conglomerate, per your suggestion, could form without WRSPQ. Liberty, SIRI, Fiat, and others you mention, would not be encumbered by the ultimate demise of WRSPQ.
That's not to say wrspq's NOLs might not figure into Liberty and Sirius plans.....who knows. But, old website content, including copyright notices on the websites, which probably just auto-updates the year for legal purposes, means nothing, absolutely nothing.
everyone just has to wait.....it will happen one way or the other prior to the money running out. Then we'll know: strategic plan was in the works all this time, or, simply a fraud.
You can't look at Malone's "investment" in wrspq as a failure should it not work out. It sure is a failure from our perspective, but not from Liberty's. Chump change to them, cost of doing business in the world of M&A and search for strategic partnerships.
The old reference links don't have much meaning, if any. I have no clue about the licensing arrangements of the worldspace name to that India startup.
I am holding my wrspq shares for better or worse, but I didn't invest a lot of money, so that's easy for me to do. The value of the NOLs could be the endgame we all hope for. We'll know soon when the wrspq money is gone. Can't recall the bank balances I saw, but I think they're less than 200k. Like I said, sign up for PACER and you can go through all of the docs yourself.
bottom line: this is going to work out well for us, or we, as shareholders, will have been defrauded. It's one or the other at this point. Let's all hope for the former.
I haven't posted in a very long time, but have been reading the posts. I was tired of the lack of info, so I set up a PACER account and searched the Delaware BK court for the latest info on wrspq BK. I suggest anyone who wishes to keep tabs on this, should do the same. It's a gov't service, but not free, but very reasonably priced, as long as you don't download a lot of docs.
Anyway, there's no new developments, other than the continual drain of the bank accts. Not a lot of cash remaining. I did note in the last financial statement available (April I think), that Quest Turnaround Advisors (Smitz) hasn't billed in months, which indicates to me they are out. As of now, it's all the parasites feeding on the almost dead body, sucking the last bit of cash out. When you look at the financial docs, you can hear the sucking sound.
I won't be accessing Pacer regularly to report on this, but wanted to let all know what's up.
MGTY1: based on your prior statements of how much you've invested in this, you owe it to yourself to get a PACER account and follow this closely. If I had invested as much as you, I'd be in contact with the attorney for the unsecured creditors and would demand answers. Should it end in Chapter 7 and disappear, if I were you, I'd take legal action against the law firms and that crook Samara for fraud, should this thing simply liquidate and go away when the cash runs dry, which will be soon.
Good luck. Liberty made its move on SIRI, so, if wrspq in the mix, it would surface very soon.
I don't get your deal man. You speak on behalf of everyone with regularity, say wild a$$ things (like the Black Eyed Peas at superbowl was the big event for wrspq and Liberty), and then get all p.o.'d if anyone at all suggests the slightest challenge to your 'facts'.
You don't think the laid off employees of wrspq are upset at their former CEO? Really? Have you ever lost your job because of a company failure or major downsize? If you have, then you know how they feel. The employees in India have been very outspoken about this, very angry over losing their jobs, and owed back pay they'll never receive, while Samara lands on his feet, and was overpaid while there. C'mon, wake up! And, you admire Samara for flim flamming YOU as a shareholder? He walked away with YOUR satellites and licenses for a lousy $5M. All YOU have is an empty office, a few xerox machines, and NOLs. If his new venture were to make a ton of money, YOU as a wrspq shareholder would get nothing for that. So....the NOLs.....that's it. Could work out, and we all hope it does....but that's all there is, all completely independent of technology at other companies. It's a financial transaction that may or may not happen.
If this stock survives it will be a miracle, and we will all win. But, I'll tell you this, if it liquidates and folds up completely when the money is gone, YOU will be the victim of a fraud. Yes, we all will, but YOU have said you have invested a lot of $ here, so it will be huge theft of YOUR money. I hope that doesn't happen to you.
What is Samara your cousin or something? ridiculous. The guy bankrupted a company, and then conveniently starts another one to take advantage of the BK, gets a few more suckers to pony up $5million and buys the assets from the very company he BK'd. Yeah, he's a sweetheart. I'm sure the folks who lost their jobs at wrspq are enamoured with him. They'd probably trample him with an elephant in Mumbai.
Second...if you remember, I've posted A LOT of hard info, including BK court info for the benefit of all here, that I GOT FROM PACER via a friend. So, it is you that doesn't post any hard info, not a bit of it. So, please. You intimate you have knowledge you can't share....unless you are a corporate insider to wrspq, or Liberty, or another white knight company involved in this specific company, you are not so constrained. So....if you have hard info...share it.
not angry at all....this is supposed to be an investor board, not a gossip column, so, my comments are all about the facts and financial realities. You can post whatever you want, doesn't bother me in the least. But, when you post something that you say is fact, you should be prepared to back it up. If you don't care to back it up, that's fine too, but then you may get questioned as to the source or factual basis. and....I don't live in the city, or even near NY. just sayin.
Libel? No way. Secondly, Malone invested. That doesn't mean he won't cut his losses and walk away. Investors do that all the time. I hope he didn't, and I still hold the stock to see what happens. I am gambling the NOLs pay off. However, unfounded, undocumented statements, and projections based on thin air don't hold water. You say a Denver office, claim that I should do research, but then won't substantiate the claim. That's fine, because it's a crap shoot for me, and if it works out, we all win, and I hope we do.
doesn't matter where the office is. and, if you know it isn't dead, then provide some proof to back it up, other than general statements about technology and the future of satellites. No one disputes those facts. The tech market conditions are not relevant to whether this debt ridden hog is going to survive. As an example, look at RIM. Despite the explosion in smartphone sales, it's in trouble. In other words, the huge market demand is not enough to overcome RIM's internal issues. RIM will live or die on its own, even as Apple and Google soar in the same space. That's the point. WRSPQ doesn't even have a product anymore (sold). So.....NOLs or bust. that's that.
of course not! whether they have cd players, connected iPhones, or robots behind the wheel....NONE OF THAT has anything to do with the empty shell known as wrspq! If this were a technology forum, fine, but this is about this dog of a stock and whether it will survive. And, that is solely dependent on whether some other company, in a related business, can use those NOLs. We all hope that's the case.
Fiat is showing cars....I don't follow how that means anything here. Fiat sells cars, so they promote them. Did they have worldspace radios in them? Right, no, they didn't. Meaningless with respect to wrspq. All of that stuff about Delphi, Fiat, Europe, etc, is all very old stuff from years ago. Again, wrspq has NO technology left.....it's all with that crook Samara. Only thing left is an office, some old computers, a copier and fax perhaps, and....NOLs. Actually, who knows if "they" even occupy an office at all. The NOLs have value, that's it.
Hi all.
Sorry, no chatter, nothing. And, the "plan" in that wikipedia article is as old as Noah's life jacket. There's no news, and that's not good. Without easy access to the BK docs, who knows what's going on, other than the monthly cash drain to the lawyers.
I believe they provide them to the court, which makes them public. While in BK, not sure if they have to file the SEC stuff like 10Q, 10K, etc. Not sure about that, but easy enough to check online via Edgar. When was the last 10Q or 10K filed? If not since 2008, then it would tell us they don't have to file that stuff while in BK. But, I don't know.
bottom line is that they are still filing docs in BK court, but kurtzman is no longer updating or posting their stuff. Why? we don't know. If anyone wants to follow it that closely, then suggest you get a PACER account via the U.S. Bankruptcy Court website. All bk docs, motions, etc, are available online via Pacer.
ok folks....there are a few new BK docs filed since july 21, but all BS, no new developments. They're not on kurtzman website. I had someone who has a Pacer account (the publicly available, for a fee, online service of U.S. Bankruptcy Court) look up wrspq's case today. That's the only official source of bk court docs. So...the cash drain continues, no news. So, who knows why kurtzman is no longer posting the docs, but my guess is they are no longer getting paid by wrspq, but no way to know what it means, if anything.
the highest bid right now on lev II is 0.0124, and 5000 shares just traded at that price......no where near 10 cents.
No doubt, if we were to see the news we've all hoped for, this thing would launch big time. Even a positive rumor would cause a nice spike. But, that's the only way it will jump up 10X current share price.
no way. who wouldn't sell into that bid at .10......that's a 10x current share price. that can't be correct.
Using level II as a predictor like that is not the way it works. If you look at Level II for most stocks, there are always some Asks that are way over priced. I think SIRI had some at $1000 per share. I don't know why traders and MMs do that, but that's how it is. I know there are all these strategies around straw bids and asks to see what will happen. The only thing that matters is the Bid. You can't assume that when the shares trade below that level, that the next step is to jump, in this case to .04, or as MGTY said, to .50, just because all the shares are now gone. That doesn't happen. New bids may emerge for the same low price, and the only way to sell shares, is to lower Ask to near or at the bid. No one, certainly in this stock, is going to take the bait at .04, let alone .50. They'll bid .015 and let it sit till someone wants to sell. Sure, if there's awesome positive news, then players start entering the fray and will have to outbid for scarce shares, forcing up the price. Bottom line, you can't assume that if there are 10,000 shares in the level II queue for sale, that when they trade, the next batch of shares will sell for some ridiculously high Ask that's been sitting there. Doesn't happen.
It may be because kurtzman is a restructure firm and wrspq is a client. If wrspq fired them (or stopped paying them), they might remove their docs from the normal place on their site...or.....if restructure is dead, same result. we don't know, and it's all wild speculation. As I said, it could also be as simple as a website maintenance error. who knows?!
found this on another site (which sells the docs). here's the summary of the latest doc they offer to sell for $7.95. Look at the filing date (yesterday). Now, if this is accurate, then obviously the lack of wrspq docs on the kurtzman site doesn't mean that the BK case is resolved, and, would also indicate that there have been no docs filed indicating liquidation or restructure. In other words, we still don't know.
Docket Description: Quarterly Application for Compensation of Elliott Greenleaf, Delaware and Conflicts Counsel (Eleventh), for the period April 1, 2011 to June 30, 2011 (related document(s)[1421], [1445]) Filed by OFFICIAL COMMITTEE OF UNSECURED CREDITORS. Objections due by 8/23/2011. (Attachments: # (1) Exhibit s 1 and 2# (2) Notice # (3) Certificate of Service) (Kinsella, Shelley)
Docket Number: 1446
Filing Date: 8/3/2011
could be....who knows. when you do the document search, take a look at the drop down box of companies to choose from, and wrspq is there as 'active', and the search result heading at the top is 'active cases', so who the hell knows. Since this website is a private law firm and not the actual court, it is not definitive proof of anything, one way or the other. If I had to guess, assuming the change on this website has meaning, I'd say it's not good, since I don't know if they post docs of other than restructuring BKs. So, if wrspq was now going to liquidate, that might trigger them to pull it down. But, I have no idea. As you said, we'll know soon enough.
who knows what the cause is....but the docs are still on the site. I found them via the search page on that site. Webmasters make mistakes like everyone else. Websites have broken links and tech issues all the time. I don't think we can make a huge assumption that the BK case is over based on this website's listing or not listing of documents. Like I said in my last post, it's possible that a change is imminent, but I'm not reading into the situation based on this alone.
I hope you are right.
The BK docs are still on the website, but I had to use their search function to find them. But, in the drop down box in that search function, worldspace is still listed among active restructuring cases. So, it's unclear if there's any meaning behind the '404 not found' error when clicking on the old link. It could be a simple web problem, or, a change, but I'm not reading anything into that. It stands to reason that when a company emerges from BK, court docs have to be filed, and a press release issued. That has not happened as of noon EDT today. Could it be imminent and that's why the BK docs aren't in the same spot on the website? I guess so, but, it could also be as simple as the web administrator doing an update/maintenance to the site in general, and stuff not displaying properly.
http://www.kccllc.net/docsearch.asp
What platform MGTY? it's all gone, but the sat in a shed. WRSPQ is a paper shell with NOLs, and it appears they issued a license to use their trademark to this new India company, but we don't know the arrangement or the licensing fee involved. That's it. Samara got it all for a song...the two operating sats, the spectrum licenses, the contract with the company operating the sats, and other stuff related to it that I can't remember off hand. There is no wrspq platform, unless there's some type of previously undisclosed asset somewhere, but that would be a problem in BK court. Perhaps spectrum licenses are left behind, but I don't think so. If you have evidence of that or a tangible platform remaining under wrspq control, please share!
What content? I don't recall anything in that space at all. I know that licenses went to Samara in the asset sale last year, but I don't know if all the licenses went, because I don't know the full list of licenses they may have had. That's unclear to me. The $5.5M lien you mention was paid off I believe via the proceeds of the asset sale. However, more importantly, Liberty owns most of the other debt, which they purchased from the original creditors. That's the real investment here, but we don't know how much Liberty paid for that debt. As far as I know, it's never been disclosed. It could be a pretty low number, and that's why a dose of realism needs to be factored in. A few million bucks is immaterial to Liberty, so, one cannot be certain that they haven't just walked away from this. We just don't know. Certainly, publicly they walked, when they abandoned talks with WRSPQ over a year ago. Are they still lurking around? Again, we don't know.
The only thing of value remaining is the sat in a shed (limited value due to its age), and the NOLs. That's it. Liberty might want it, and that would be awesome. Sure hope that's the case, but at this point, there's no hard evidence indicating they do. We just have to wait it out.
The revived India company is just using the worldspace name via some sort of licensing deal, but we don't know for how much $ (if any!) or to exactly who they have the license deal with. WRSPQ owns only the one sat in storage. The two in orbit are owned now by Samara, not wrspq. The only thing Malone may want are the NOLs, as said over and over again on this board by just about everyone posting here. WRSPQ is only a paper shell, with exception of the one old sat in a shed, and perhaps some office equipment. I believe all the spectrum licences went to Samara as well, but I cannot be certain of that.
Portcitybob....I'll take a shot at answering your questions as best I can...
We don't know yet how much $ was paid to wrspq for the right to license use of the name. I don't think it matters which one, as both trademarks are owned by wrspq.
Yes, it's a ton of money going out the door, so it's either a complex plan, or, it's a complex scam. We will know if it emerges from bk, or simply liquidates when the money runs out.
You mention Malone investing $21M. I don't know where you got that number, but I don't think the amount has ever been made public, other than the direct DIP loan, but that was repaid when the asset sale happened earlier this year. I don't think anyone knows how much he paid to buy up the debt.
The satellites in orbit were not decommissioned...they were sold as part of the asset sale to Samara's new scam (I mean new company).
I believe the only hard asset remaining is the spare satellite in storage, other than office equipment, and of course, the rapidly disappearing cash in the bank.
and someone earlier was speculating about July 15 or 21, and extension to end of year. Those timeframes are not related to wrapping this up. They were extensions to permit wrspq to remove to bk court any lawsuits that may pop up. Nothing to do with a line in the sand to conclude bk.