Sirius in bankruptcy?

gotta go · Feb 11, 2009

Sirius preparing possible bankruptcy filing: report
Tue Feb 10, 2009 5:55pm EST

NEW YORK (Reuters) - Sirius XM Radio Inc has been working with its advisers to prepare for a possible bankruptcy filing, the New York Times reported on its website on Tuesday, citing people close to the company.

The move could put pressure on satellite television company EchoStar Corp, which reportedly holds a substantial amount of Sirius XM debt. The Wall Street Journal reported Monday that EchoStar chief Charles Ergen made an offer to take control of the satellite radio company late last year, but he was rebuffed.

Sirius officials did not respond to several telephone and email messages, and EchoStar declined comment.

Sirius has been working with restructuring expert Joseph A. Bondi of Alvarez & Marsal and bankruptcy lawyer Mark Thompson of Simpson, Thacher & Bartlett to help prepare a Chapter 11 filing, the New York Times reported, adding that a filing could come within days.

A Simpson, Thacher spokeswoman declined comment, and Bondi was not immediately available for comment.

Sirius has also been working with investment bank Evercore Partners, the newspaper said. Evercore could to be reached immediately.

piper1 · Feb 11, 2009

If EchoStar takes it over it will likely be way better off. The current management is so consumed with the financial's of the company they are doing a very poor job of running it and driving away subscribers.

Bring on Echostar!!

OntarioVanMan · Feb 11, 2009

I read that they were on a short list of companies to be bankrupt by summer of 09...their contract is up with GM soon and Toyota may not renew.....

spudhead911 · Feb 11, 2009

I thought GM had a contract with XM Radio, Ford has a contract with Sirius

guido4475 · Feb 11, 2009

but they are both the same company now, right? (xm and sirius)

spudhead911 · Feb 11, 2009

Yup they merged a while back.

guido4475 · Feb 11, 2009

so while i am running through texas at night i may have no choice except to listen to the only music in that area? mexican/spanish? that is, if xm/sirius goes under.

theoldprof · Feb 11, 2009

This is why I didn't renew a year or two or more contract with them for both my cars. It was a great offer! I have always gone with a monthly payment and I will continue to do so. Hate to give somebody a bunch of my loot and then they go belly up.