NSR challenges Worldspace sale - again

Today, March 8, the Worldspace sale hearing is scheduled to take place, but on March 4 New Satellite Radio presented a last-ditch motion to persuade the Delaware Bankruptcy Court to permit NSR to examine “and conduct Due Diligence” on the winning bidder, and BEFORE the formal sale is approved by the court.

NSR is/was the partner of Worldpace’s European operation, and is alleging that Worldspace is selling assets that it does not own. The company told the court that it has been trying to find out who might be the potential bidders for Worldspace’s assets since December 2008, but to no avail.

NSR, in its court filing, says it still has no idea who the “proposed (and rejected) buyer/assignee is.” NSR says the deadline for submitting bids has now passed and it is not interested in bidding, therefore knowledge of any bid details could not be harmful. NSR further argues that the bankruptcy court’s sale hearing is not the venue to determine a dispute concerning debtor vs non-debtor proprietary rights – and especially the rights of Worldspace Holdings (not in this bankruptcy case) in the Afristar satellite. Moreover, NSR alleges that Worldspace’s documents (in support of their argument) have not been tested and do not support the points that Worldspace is trying to make.

Worldspace Holdings has been placed into a separate bankruptcy in Denmark on Feb 11 2009, and a hearing has been scheduled in Copenhagen’s Maritime & Commercial Court for March 16, at 10.30am.

NSR has submitted to the Delaware court a signed letter (dated Jan 23 2009) from Worldspace Italia SpA, making it very clear that Worldspace Italia does not consent for its assets to be disposed of by the Delaware Court. The letter went to Robert Schmitz, Worldspace’s ‘chief restructuring officer’.