Worldspace, a satellite radio company based in Silver Spring, Md., has filed for bankruptcy. The Wall Street Journal first reported the news, and the only reason I got interested in the company is because back when they were launching, they hit me hard with their press releases. I never really cared for the idea behind Worldspace — satellite radio services for rest of the planet — back then and I still don’t care much for it.
The company, which was offering its radio services in Europe, Asia and Africa, has $1.8 billion in debt. Worldspace has liabilities of $2.12 billion and assets of $307.4 million. The company also owes about 50 employees $1.5 million in backpay and has seen a significant number of employees leave — not that anyone can blame them. It has access to $13 million in loans from hedge funds which the company will use to operate under bankruptcy protection. It has 170,000 subscribers in 10 countries. CEO Noah A. Samara was involved with XM Satellite Radio Holdings in the past.