Worldspace, Inc. Reaches Agreement to Defer Debt Payment
9/19/2008 8:17:01 AM
SILVER SPRING, Md., 1worldspaceTM (WRSP) announced today that it has reached an agreement in principle with each of the four holders of the Company's amended and restated secured notes and second amended and restated convertible notes to defer until Sept. 25, 2008, the Company's obligation to pay $19.97 million in principal amount of the Bridge Loan Notes, plus accrued but unpaid interest due on the Bridge Loan Notes, which was payable on Sept. 15, 2008. During a period of forbearance, the Company is working on developing a comprehensive operational and financial restructuring plan for addressing both its immediate and longer term financing requirements.
The Company intends to present the plan to the Holders on or before Sept. 25, 2008 and to seek their cooperation in facilitating the implementation of the plan or an alternative plan. Under the agreement in principle, the Company has agreed to use its reasonable best efforts to appoint a Chief Restructuring Officer acceptable to the Holders no later than Sept. 30, 2008.
In addition, in connection with the agreement, Mr. Noah Samara has agreed that, in the event all amounts due under the Bridge Loan Notes are not paid by Sept. 25, 2008, he will, if requested by the Holders, step down from his positions as CEO and Chairman of the Board of the Company while remaining as a director of the Company. The agreement is subject to the satisfaction of certain conditions, which the Company believes will be satisfied before close of business on Sept. 19, 2008.
The Company also announced that it has retained The Bank Street Group () as its special restructuring adviser to assist in developing the plan referenced above and in addressing its liquidity issues more generally, including restructuring the Company's debt, identifying funding opportunities and pursuing other strategic alternatives.
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