WorldSpace, Inc has announced that the asset purchase agreement providing for the sale of substantially all of its assets to Yenura Pte Ltd. had been terminated by WorldSpace’s debtor in possession lenders (”DIP Lenders”). The DIP Lenders exercised their right to terminate the Yenura purchase agreement after Yenura had defaulted in the payment of certain amounts payable thereunder and had failed to remedy such defaults within applicable cure periods. WorldSpace is in discussions with its creditor constituents regarding, and is reviewing, its strategic alternatives in light of the notification of the Yenura purchase agreement termination.
(Source: WorldSpace via Business Wire)
Andy Sennitt comments: In plain English, this looks like the end for WorldSpace. Yenura was set up by the founder of WorldSpace, Noah Samara, in an attempt to prevent the collapse of the entire project after WorldSpace was declared bankrupt. Apparently this rescue attempt has failed.