When we last visited these super villains, they were busy taking over XM radio, and taking away some of your favorite channels. Sirius is now in the spotlight again, but this time, they can’t pay their bills. Sirius could be heading towards the all to familiar bankruptcy court. If by chance chapter 7, or 11 is in their future you can bet the subscribers will come out the loser. There are currently talks of take overs, and acquisitions, but right now it is anyone’s game.
According to their recent press statement they will be jocking around some senior notes for a later payment date, full text. At this point Mel Karmazin has not issued any forward looking statements, but when a company that holds billions in assets closes at only $.10 on NASDAQ you can only deduce that dire times lay ahead.
According to reuters.com ”
Sirius also has $350 million of secured bank debt due in May 2009. After the refinancing announced on Friday, it still has about $227.5 million outstanding on its debt due in December.
If the talks fail, Sirius — home to programs by personalities including Howard Stern and Oprah Winfrey as well as Major League Baseball — may file for bankruptcy.
“These transactions may not be successfully consummated,” the company said in a statement. “If these transactions are not consummated, it may be forced to file for bankruptcy protection as early as February 17, 2009.”
Sirius, which has a total debt load of about $3.25 billion, began planning to refinance its debt following its merger with rival satellite-radio operator XM, which was approved last July. But the credit markets froze shortly thereafter.”
Once again we have to ask what will happen to that $500.00 lifetime fee you paid? And no Sirius is not earmarked, atleast as of right now, for any TARP funds. So no bailout, no crystal clear radio.
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