Short On Cash, WorldSpace Seeks Ch. 7 Conversion

Law360, New York (May 17, 2012, 8:24 PM EDT) -- Satellite radio provider WorldSpace Inc. asked a Delaware bankruptcy court Wednesday to convert its Chapter 11 proceedings to Chapter 7, noting that it sold off its assets to Yazmi USA LLC in 2010, had limited cash and was incurring administrative expenses.

After selling all their assets to Yazmi for $5.5 million, the WorldSpace debtors resolved transition issues and post-closing obligations and now have only $9,975 remaining in their estates, said the motion to covert.

“The debtors do not believe that they will be able to propose...
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