Worldspace India to sue

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Worldspace India has briefed local lawyers.

Worldspace India was instructed to cease operation on Dec 31st. However, most of the staff are still very much at their desks, and the local operation is briefing lawyers, and is contemplating an action against Worldspace Inc (the Washington parent which is in Chapter 11 bankruptcy) and Liberty Media.

The action being contemplated alleges improper and unethical handling of the closure and a failure to honour legal obligations. Letters have also 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 paid by Worldspace from Washington because local Indian bank accounts had been frozen.

One staffer told Rapid TV News: "I don't think anyone here in India questions the right of Liberty to shut India down. It's their business and they have the right to shut it down if they believe it is not financially viable. That's not the issue here. It's the way, [Worldspace Inc] went about it with complete disregard to employees and subscribers," said our insider.

© Rapid TV News 2009