Worldspace sale in doubt
Worldspace has asked the Delaware Bankruptcy Court to extend the period of its Chapter 11 bankruptcy. The original period granted by the court ended on July 31. Worldspace is now asking the court to let this date slip to Dec 31.
A Motion before the court said, in effect, that Worldspace has been too busy to compile its reorganisation plan. There are also doubts – as ever – whether Worldspace founder Noah Samara can come up with his much-promised cash.
Worldspace applied for Chapter 11 bankruptcy protection on October 17 last year. Not helping matters is that Noah Samara’s company Yenura, which has agreed to buy Worldspace’s assets, “has yet to consummate” the deal. The court filing states that Yenura was continuing, “to make efforts to…raise the necessary capital to consummate the sale”.
The Delaware court approved the sale of Worldspace’s assets to Yenura on March 18. Yenura promised to pay $28m for the assets. The court ruling requires that the purchase be consummated “promptly”.
The court filing pulls no punches, stating clearly that neither Worldspace, nor the other parties involved can prepare a reorganisation plan until Yenura hands over its cash. However, one has to wonder at how much delay the court – or Worldspace creditors – will tolerate while Samara stumps up his ever-elusive cash.