The saga of defunct satellite broadcaster World Space continues to drag on, despite the fact that its chapter 11 bankruptcy proceedings were scheduled to conclude by Aug. 1, 2009.
According to reports filed by Chris Forrester in Rapid TV News, the latest twist in a tortuous tale of decline comes as former World Space CEO Noah Samarra's purchase of his former company's assets at a federal bankruptcy court auction has apparently stalled out. Yanura PTE of Singapore, a firm reportedly controlled by Samarra, placed a high bid of $28 million with the court back in March, but has been unable to deliver the cash needed to close the deal, forcing an extension of the bankruptcy proceeding.
World Space filed for chapter 11 last year, but has continued to operate under a "Debtor in Possession" arrangement using funds borrowed against the firm's ultimate liquidation. That credit line is now said to be nearly exhausted.
Forrester says that bankruptcy attorneys handling the case have filed for an extension of Chapter 11 till Dec. 31, giving Yanura a few more months to find financing for the transaction.