MUMBAI: The Worldspace India has decided to initiate legal action against Worldspace Inc (the parent company) and Liberty Media.

The India team of the satellite radio company that was left in the lurch when Worldspace decided to terminate India operations abruptly on 31 December 2009, has been in talks with local lawyers on ways to secure their dues. It is learnt that the notice will shortly be despatched to the US parent.

The Worldspace India team continues to report daily to work in absence of any clear instructions.

The action, says the team, is being contemplated against improper and unethical handling of the closure and a failure to honour legal obligations. Letters are also being sent direct to Liberty Media, it is learnt. Last week, the team had approached information and broadcasting minister Ambika Soni complaining about the closure and seeking the prime minister's intervention in the issue.

While the US parent has paid the Worldspace India team's December 2009 salaries, other dues are still pending. 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.

The India team says it is not against Liberty's decision to shut India operations, but is only against the manner in which it was done, with disregard to paying subscribers and employees.