"Sirius XM reportedly on the brink" by Associated Press | February 11, 2009
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 yesterday that documents and analysis of a potential Chapter 11 filing are nearly complete, citing 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 on Tuesday, the Times 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....
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