Silver Spring,
Md. – Liberty Satellite Radio, a
unit of John Malone’s Liberty Media (NASD: LINTA), said on Wednesday that it has called off
talks regarding a possible "transaction" with
WorldSpace, leaving the international satellite radio provider in financial
limbo.
Liberty, which has been providing
WorldSpace with debtor-in-possession financing since the company filed for
Chapter 11 bankruptcy in late 2008, had been expected to combine the struggling
company with Sirius XM, in which Liberty
also holds a significant stake.
"WorldSpace is awaiting information from Liberty as to its expectations as WorldSpace’s secured
lender with respect to the handling of Liberty’s
collateral," the company said in a statement.
"In the interim,
WorldSpace is planning for a potential de-commissioning of its satellites and
reviewing its strategic alternatives in light of the termination of
negotiations."
WorldSpace counts the bulk of its subscribers in Asia and Africa.
Related Links:
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