Sirius XM threatening to file bankruptcy

**Mort** · 02-11-09, 10:43 PM

BY AP from The Huffington Post

Sirius XM Radio Inc. has hired advisers to prepare for a possible bankruptcy filing, which could come in days, according to a news report.

The New York Times said late Tuesday documents and analysis of a potential Chapter 11 filing are nearly complete, say people close to the company.

Sirius, whose radio personalities include shock jock Howard Stern, has struggled to refinance its debt load at a time when banks are skittish about lending. About $1 billion worth of debt comes due in 2009.

A bankruptcy could complicate matters for Charlie Ergen, chief executive of Dish Network Corp., who recently bought a major portion of a $300 million batch in Sirius debt that matures next Tuesday, the paper said.

Since then, speculation has arisen about whether Ergen would make a bid to buy Sirius. The possibility of a bankruptcy filing could force his hand to make an offer now in order to avoid the auction process in court. It also could put pressure on him to convert his debt into equity in the company at a higher price than he initially considered, the paper said.

Sirius has hired Alvarez & Marsal; Simpson, Thatcher & Bartlett; and Evercore Partners.

Sirius declined to comment on the report, as did Alvarez & Marsal and Evercore Partners. Simpson, Thatcher & Bartlett didn't immediately return a call for comment.

Shares of Sirius close at 11 cents on Tuesday.

http://www.huffingtonpost.com/2009/0..._n_165845.html

My dad has a XM Sirius subscription. It would be a shame if they file for bankruptcy because i hate FM radio.

**Unorignal** · 02-12-09, 02:16 AM

I hope not, I loves mah BabaBooey!

**Guyver** · 02-12-09, 02:25 AM

They've already started removing some of the channels (SiriusXM) from DirecTV.

**Kanati** · 02-12-09, 04:40 PM

I hate Stern, but I do loves me some XM radio 70s on 7.

**FragRaptor** · 02-12-09, 04:44 PM

Fuck the economy...

**Toker** · 02-12-09, 04:52 PM

I just hooked up my Sirius in my car last night! Was nice to listen to it too, while I was working under the hood...

**MotoZ** · 02-12-09, 05:06 PM

They paid Stern $500M. Probably regretting that decision.

**Red_Lizard2** · 02-12-09, 05:29 PM

video killed the satellite radio star?

(btw i spelled satellite right no the first try, which is amazing to me)

**AK99** · 02-12-09, 05:35 PM

Oh man wtf....I was going to get a Sirius XM subscription....

**knigtstemplar** · 02-12-09, 06:40 PM

They are not regretting paying Stern the money. He was offered a bonus if he brought something like 2 million new subscribers in, and I believe he brought many more than that. Without Stern Sirius would be worse off than they are. I think the economy tanking is bad timing for a fairly new industry like satellite radio. With car makers such as GM, Ford, and Chrysler sales down so far it has really hurt new subscriptions. Sirius relies heavily on the car industry to hook new subscribers after the free trial wears off on their new car. Echostar the satellite TV company is in the works to take over Sirius' debt and take over the company, so most likely no one will lose service.