WorldSpace gets final court OK to extend DIP facility, increase borrowings

By Jennifer Lanning Drey

Portland, Ore., Feb. 25 - WorldSpace, Inc. was granted final court approval to extend its debtor-in-possession financing and to increase the DIP loan borrowings Wednesday in the U.S. Bankruptcy Court for the District of Delaware, according to a source familiar with the case.

As previously reported, WorldSpace asked the court to extend the DIP facility to Feb. 27 from Feb. 6 and to approve $1.3 million in new borrowings.

When requesting the approval, the company said it did not have enough cash to satisfy the DIP loan obligations.

In addition, WorldSpace said it requested the extension to avoid an event of default that would be triggered if it had not entered into an agreement for the sale of substantially all of its assets by the maturity date.

Meanwhile, the company said the extra funding would allow it to complete the sale process.

WorldSpace, based in Silver Spring, Md., has established an operational satellite-based digital radio system, commonly known as Digital Audio Radio Service, and is a licensed DARS provider. The company filed for bankruptcy on Oct. 17. Its Chapter 11 case number is 08-12412.

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