WorldSpace, a would-be global pay-radio broadcaster which filed for Chapter 11 reorganisation and protection from creditors back in 2008, has finally asked the US Delaware bankruptcy court to move its case into Chapter 7, which is a full bankruptcy.
A statement from WorldSpace, as part of its bankruptcy court filing, said: “The Debtors do not believe that they will be able to propose or confirm a plan in these cases, and are incurring administrative expenses. Based on these circumstances, the Debtors request that the Court grant the Motion to convert these cases as soon as possible.” The Court has scheduled a June 6, 2012 hearing on the matter.
Chapter 7 means that all pending legal cases against a company are “stayed” and most creditors cannot start or continue lawsuits, which will be a major disappointment to the assorted Class Action lawsuits that have been pursuing WorldSpace and/or founder/chairman/CEO/inventor/philanthropist and all-round humanitarian genius Noah A. Samara.
Some of WorldSpace’s many investors have alleged deliberate deception and fraud, thereby prompting the Class Actions. When the failed broadcaster filed for Chapter 11 it stated it had liabilities of $2.1 billion and assets of $307 million. However, the asset sale realised next to nothing, and the orbiting satellites were bought by a company owned and controlled by founder/chairman/CEO/inventor/philanthropist and all-round humanitarian genius Noah Samara.
This publication has frequently criticised Samara. But this is nothing compared to the vitriol poured on the company by investors and former shareholders. They are highly critical of the Chapter 11 bankruptcy process, and the way the lawyers and “recovery” operators have handled the complete process. “All bleeding the company dry” is but one on-line comment recently.