Posted on 02/13/2009 12:33:54 PM PST by marshmallow
Financially strapped Sirius XM Radio Inc. said Friday that it could file for bankruptcy as early as Tuesday if it cannot successfully negotiate with the holders of its debt.
While the satellite radio company said it has exchanged $172.5 million of debt maturing in December for new debt due in 2011, it still has about $175 million coming due this Sunday.
Sirius is fighting against attempts for control by Charlie Ergen, the chief executive of Dish Network Corp. and sister company EchoStar Corp. Ergen bought much of a $300 million batch of discounted Sirius bonds that come due next week. Sirius had rejected a previous offer by Ergen for control of the company.
A bankruptcy filing for Sirius would give it the right to terminate contracts with on-air talent, such as Martha Stewart and Howard Stern, who has a five-year, $500 million deal. A Chapter 11 filing also could crimp Sirius' growth because subscribers might shy away from a company in bankruptcy. Sirius has nearly 20 million listeners and provides a wide range of music, sports and talk radio.
Liberty Media Corp. is in talks with Sirius about possibly investing in the company, a move that could fend off Ergen.
But the DirecTV Group Inc., a Dish rival controlled by Liberty Chairman John Malone, is not involved in the negotiations, according to a person close to the situation. The person spoke on condition of anonymity because he is not authorized to talk about the negotiations. Liberty's participation in the talks was reported earlier by The Wall Street Journal.
Analysts said they didn't think DirecTV would want a satellite radio business or its satellites. DirecTV, the nation's largest satellite TV company, has launched new satellites and is focusing on enhancing its TV service.
Sirius and Liberty declined to comment.
(Excerpt) Read more at finance.yahoo.com ...
They gave a guy $500 million for trash talking about bodily functions?
File this under "good news".
I would love to hear that Howard Stern would be permanently off the radio.
I remember so many clowns telling me in various forums how Big, Bad Howie Stern would ‘make Sirius’.
I’d go back to laugh at them, complete with supporting quotes from back then, but I don’t do storm front lite websites like Liberty Post.
I am so mad at Dish Network for jamming this “Sorriest
radio?” down the throats of dish TV viewers.
As people look for places to reduce spending, Sirius/XM is high on the list. I canceled last month, even after the offered a full year for half price. I liked it a lot, but I don’t miss it.
Great...I renewed my subscription and paid upfront for a full year, three months ago.
Siriusly?
satellite radio is great, they should be able to make money, but giving away 500 mil to Stern was idiotic.
Yeah and once the Pay for air goes under and the Faurness Doctrine comes to pass...where will Rush, Sean, and Mark Levin go?
I think it is interesting that the Pay for Air has to be KILLED OFF before the Fairness Doctrine has real “teeth”...
My subscription to XM came due in December. I called to cancel, because I didn’t like the new lineup, and they offered me 3 months free. I would guess that this means XM is in trouble, too.
Can someone clarify this for me? I know Sirius is in trouble, but will this be taking XM along with it, or was the merger simply for programming purposes only? I like my XM radio, especially since we can pick up stations when we’re camping in the mountains. Great classic rock on Top Tracks, er Classic Vinyl, or whatever they’re calling this now.
Does this mean ALL satellite radio is about to go POOF?
Much of what he got was no doubt stock, and, though it may nominally be $500M, I'm sure much of it was restricted. It's toast now.
Heads up!
yes SIRI owns XM
YUP see post 9
I sort of hate to ask, but is this series?
I was hoping satellite radio would be the “redoubt” for conservative talk radio once the 0bamunists throw them off the air.
No. It’s sirius.
I’m an XM subscriber. I keep getting offers to add “the Best of Sirius”, which consists primarily of Martha Stewart, Howard Stern, and the NFL. I’d love to add the NFL, but I refuse to subsidize Howard Stern’s filthy mouth.
Honestly, when they considered “the best” to be Stern and Martha, they’ve got issues.
And it's declaring bankruptcy.
Hmm, what will happen to the network and all the hardware and capability? Is someone waiting to pick an entire system up at yard sale prices?
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