Satellite radio provider WorldSpace has completed its announced US$5.5m asset sale to Yazmi USA.
In a statement, Worldspace announced that with the transaction, itself and its affiliated co-debtors will be able to exit Chapter 11 bankruptcy protection….
Satellite radio provider WorldSpace has completed its announced US$5.5m asset sale to Yazmi USA.
In a statement, Worldspace announced that with the transaction, itself and its affiliated co-debtors will be able to exit Chapter 11 bankruptcy protection. The company will continue some operations under contract with the buyer for a transition period.
The deal completion follows approval earlier this month by the US Bankruptcy Court for the District of Delaware.
Yazmi USA is an investment vehicle owned and controlled by Noah Samara, who founded WorldSpace back in 1990. Samara previously tried to snap up WorldSpace, which filed for Chapter 11 in October 2008, via another investment vehicle, the Singapore-based Yenura. The company’s debtor-in-possession lenders, however, terminated the agreement in mid-2009 when it became apparent that Yenura was struggling to find the necessary funds to finance the US$28m acquisition.
Shearman & Sterling and Pachulski Stang Ziehl & Jones were counsel to WorldSpace on the bankruptcy case. Shearman & Howard were counsel to the debtors’ secured lenders, while Arent Fox and Elliott Greenleaf & Siedzikowski were advising the unsecured lenders.