WorldSpace Inc fka WRSPQ

[bepop12345]

I don't know if this was posted found it on a board for Liberty:

Will see how this all plays out with SIRI and LCAPA.

Worldspace owed Liberty $116m
Chris Forrester ©RapidTVNews | 08.06.10


Court claims at the Delaware Bankruptcy proceedings designed to wrap up the
purchase of Worldspace's assets, show that Liberty Satellite Radio has
"aggregate secured claims" over Worldspace totalling more than $116m. Liberty
looks like holding onto certain Worldspace Italian assets as part of the final
settlement with Worldspace.


The court documents state: "The consideration to be received from [incoming
purchaser] Yazmi, [controlled by Noah Samara] though, is not sufficient to pay
Liberty Satellite Radio and Liberty Satellite Radio Holdings in full. The
Debtors estimate that Liberty's aggregate secured claims exceed $116 million.
Under the proposed Settlement Agreement, the Debtors will be released from such
claims (and the corresponding liens), thereby allowing the Debtors to distribute
the proceeds of the sale to other creditors. In exchange, the Debtors (and the
other Parties to the Settlement Agreement) will provide releases to Liberty, and
Liberty will receive other consideration..."

That `other consideration' will be that "Liberty will obtain a return of
$370,000 in funds (which the Debtors have transferred to Liberty) that Liberty
had loaned to support WorldSpace's Italian subsidiary. When Liberty decided not
to pursue a Liberty APA, the Debtors' need for hose funds evaporated. Liberty
also will receive $250,000 of the Yazmi sale proceeds, which is 5% of the total
and significantly less than Liberty would get if its senior secured claims were
allowed. The Debtors believe that the note from WorldSpace Italia that Liberty
will retain is of little value; the Debtors believe WorldSpace Italia cannot
repay that note, and the Debtors have limited resources with which to pursue
collection. The Debtors [...] are willing to relinquish their right to abandon
their assets to Liberty."

Liberty will also end up – post closing of the deal – with a lien on $5.5m
(which matches precisely the amount Samara is paying for the Worldspace assets),
and along with all the other parties involved is barred from suing Samara's new
business (Yazmi) as part of the core agreement.

There doesn't seem to be a provision in the sale agreement for the sale or
handover of the `ground spare' and unlaunched/uncompleted satellite.

The Delaware court is expected to approve the transfer of Worldspace assets to
new owner, Noah Samara, on June 10.

© Rapid TV News 2010