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| Edited By: Praveena Sharma |Source: DNA |Updated: Mar 17, 2018, 02:27 AM IST
There seems to be more to the sudden closure of US-based satellite radio service provider WorldSpace Inc’s operations in India than meets the eye.
Employees of the satellite radio service company have learnt that American media conglomerate Liberty Media, which has acquired WorldSpace’s worldwide liabilities and is in the process of taking over its assets, is planning to liquidate operations in India “to wipe off the current liabilities with subsidiary, subscribers, employees, vendors and business associates.”
After that, the potential new owner will provide services in India through the WorldSpace satellite “at a later date.”
In a note addressed to Prime Minister Manmohan Singh, the employees of WorldSpace India have written that the whole process was being carried out in a hushed manner to avoid participation of Indian investors in the deal.
“Despite India being a primary market, the sale of the asset is being concluded without publicising the same in India and ruling out any possibility of a domestic investor in India participating in the sale,” states the letter to the PM and ministries concerned.
Apparently, domestic direct-to-home (DTH) service vendors Reliance Big TV and TataSky had evinced interest in acquiring the operation of the satellite radio service provider.
“The discussion, however, with both of them never moved to the second stage,” said a WorldSpace official who did not want to be named.
The satellite radio uplink facility provided by the WorldSpace Inc to its Indian subsidiary from Singapore was switched off on December 31, leaving over 1.5 lakh of its exclusive subscribers in a lurch, not to mention hundreds of employees and business partners.
The company announced its decision to shut down its India business on December 25.
The letter by WorldSpace India employees to the PM accuses the previous and the current owners of the company of deviously trying to shirk their liabilities in India. The company’s current liabilities in the country are estimated to be close to Rs 45 crore.
“In summary, Liberty Media and Mr Robert Schmitz, the current chief restructuring officer of WorldSpace Inc, want to escape from liabilities in India while retaining the assets for encashing the India business opportunity in India at a later date.”
The note says Liberty Media and WorldSpace have cleared their liabilities in all other countries of operation. “Certain loopholes in our system are being misused to escape from responsibilities of orderly closure of the business,” state the employees in their representation to the government.
The employees request the government to intervene in the matter to ensure that radio service provider exits only after following the due process applicable to any other media or telecom services in India.
They have also asked for sale of satellite assets to be publicised and restriction of re-entry of WorldSpace/Liberty in India in a new guise until all issues relating to its liabilities and protection of stakeholders are resolved.
