Worldspace India to be ceased

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Worldspace India has been was instructed to cease the operation on Dec 31st. Though, most of the staffs are still active at their desks, and the local operation is briefing lawyers, and is contemplating an action against Worldspace Inc. and Liberty Media.

The action is the consequence of the financial difficulties facing WorldSpace India’s parent company, WorldSpace, Inc., which has been under bankruptcy protection since October 2008.

The probable buyer of much of WorldSpace’s global assets has decided not to buy the WorldSpace assets relating to and supporting WorldSpace’s subscription business in India. As a consequence, WorldSpace, Inc. must discontinue its subscriber business in India.

The action being contemplated alleges improper and unethical handling of the closure and a failure to honour legal obligations.

Letters related to this have already been sent direct to Liberty Media, and to India's broadcasting minister, Ambika Soni complaining about the closure.

Worldspace India was financially self-sufficient until November last year despite the Indian office being owed $9.8m for unpaid bills by its Washington-based parent.

However, December's salaries were being paid by Worldspace from Washington because local Indian bank accounts had been frozen.