WorldSpace Satellite Radio service has confirmed that it is discontinuing its operations across India by the end of the current year.
While it might have been a shock to some, the announcement has not come as a total surprise to most. WorldSpace’s parent company in India had, in 2008, already filed for Chapter 11 bankruptcy, but the filing did not cover Indian operations at that time, and the executives had stressed that the service across the sub-continent would run uninterrupted. But things seem to have taken a different turn now.
All customers who have already paid for the service beyond December 2009 now might lose all their money, or wait for the bankruptcy proceedings in the US to work out the claims.
WorldSpace has sent around an email to all consumers, which says that their contracts are with the US-based WorldSpace Inc., in addition to providing contact details for subscribers in case they wish to be listed as creditors of the firm.
“You may have a potential remedy under the U. S. bankruptcy law. You may file a claim under the claims procedure that is intended to protect creditors of the bankrupt company. Sometime early next year, a claim servicing company will send notice to all creditors listed by the company”, said the email distributed by Mr. Schmitz, Chief Restructuring Officer, WorldSpace, Inc.
