Silver Spring, Md. - Mired in red ink, Worldspace, a provider of satellite radio services to foreign markets, said that it has filed for Chapter 11 bankruptcy protection.

The company, which recently began to operate under the name 1worldspace, said that the move was needed so that it can raise funds to repay its outstanding debts, either through the sale of the company or recapitalization.

Worldspace will continue to operate under $13 million in debtor-in-possession financing for up to 90 days, while it attempts to negotiate a deal.

The company last month announced deals with each of its four note holders to defer more than $20 million in debt payments while it attempted to restructuring operations and raise new funding.

It had planned to launch Europe's first satellite radio service as early as 2009.

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http://www.1worldspace.com