WorldSpace files for bankruptcy in US
Fails to get new funding to repay debt.
R. Ravikumar
Chennai, Oct. 18 Digital satellite radio broadcasting company, WorldSpace Inc,
has filed for bankruptcy protection in a US court after failing to obtain new
financing.
According to reports, the Maryland-based company has listed a debt of $2.1
billion and assets of $307.4 million as of June 30, 2008. WorldSpace has sought
bankruptcy protection so as to be able to raise fresh funds to repay its debts.
WorldSpace is present in over 130 countries worldwide. It launched its India
services in 2000 with over 35 free-to-air channels. In 2002, it converted a few
of its channels to pay and went completely pay in 2004.
As at the end 2007, it had a customer base of over 1.6 lakh in India - over 93
per cent of its world-wide subscriber base.
It beams over 45 channels in India, most of which are branded 'WorldSpace'
though a few are owned and operated by other players such as BBC, CNN, AIR and
KL Radio.
The company stopped all promotional and marketing activities in India by
mid-2007. It has also applied for licence to have terrestrial repeaters for
better decoding of satellite signals and to develop mobile receivers to be used
in automobiles.
>From Day One, WorldSpace has been subsidising all its receivers in the Indian
>market. Initially, it sold receivers made in Japan (National, JVC and Hitachi)
>and later added a few brands from Korea and BPL in India before finally
>sourcing all the receivers from BPL. These receivers are retailed in India at
>prices between Rs 2,500 and Rs 3,500.
The current subscription rate is Rs 1,800 a year. WorldSpace has also been
trying to rope in a local partner for a strategic alliance. Besides, licence
permitting, it intends to introduce 'mobile' receivers - such as those that
could be carried in cars. WorldSpace has been in talks with a few car makers
for this.
The head of India operations could not be contacted. However, other sources,
when asked about the fate of the 1.64 lakh Indian subscribers, said that it
would take "a few more days for us to get some clarity about India operations".
http://www.thehindubusinessline.com/2008/10/19/stories/2008101951240100.htm
A graceful taunt is worth a thousand insults.
~Louis Nizer~
--~--~---------~--~----~------------~-------~--~----~
You received this message because you are subscribed to the Google Groups
"Kences1" group.
To post to this group, send email to [email protected]
To unsubscribe from this group, send email to [EMAIL PROTECTED]
For more options, visit this group at
http://groups.google.com/group/kences1?hl=en
-~----------~----~----~----~------~----~------~--~---
<<inline: 2008101951240101.jpg>>
