Worldspace gets fourth forbearance agreement for bridge loan notes, convertibles

By Devika Patel

Knoxville, Tenn., Sept. 19 - Worldspace, Inc. said it negotiated a fourth forbearance agreement with each of the four holders of its amended and restated bridge loan notes and second amended and restated convertible notes.

The company now plans to delay payment of the $19.97 million in principal on the bridge notes until Sept. 25. The company said it is working on developing a comprehensive operational and financial restructuring plan.

As previously reported, the company negotiated an initial forbearance agreement with the investors on July 3 and a second agreement on July 17.

The first agreement allowed the company to defer its obligation to pay the bridge loan notes' interest and principal payments, which totaled about $19 million, and the convertibles' interest payments, which totaled approximately $1 million, to July 9 and the second agreement extended the deadline to July 31. The third agreement was negotiated on July 24 and changed the amount owed to $18.5 million and extended the deadline to Sept. 15.

Worldspace, based in Silver Spring, Md., has established an operational satellite-based digital radio system, commonly known as Digital Audio Radio Service (DARS), and is a licensed DARS provider.

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