Posted by madcityradio.com on February 11, 2009 at 22:25:51:
In Reply to: Sirius XM Prepares Bankruptcy Filing posted by Bleep on February 10, 2009 at 17:58:24:
Sirius XM Stock Plunges On Bankruptcy Reports
NEW YORK -- February 11, 2009: Sirius XM Radio stock closed down 52 percent Tuesday, at a nickel a share, on a New York Times report that the debt-laden satcaster could soon file for Chapter 11. Sirius XM has about $175 million in debt payments due at the end of this month that, says the Times today, "it is unlikely to be able to pay."
If Sirius XM does file for protection, the paper said service is unlikely to be interrupted, but "the company might have to terminate contracts with high-priced talent like [Howard] Stern or Martha Stewart."
The Times reports that Sirius XM CEO Mel Karmazin has been "locked in talks" with EchoStar CEO Charles Ergen over the options for the satellite radio broadcaster; says the paper, "The men are said not to get along." A earlier Wall Street Journal report said Sirius XM CEO Mel Karmazin turned down an earlier takeover offer from Ergen.
About the Chapter 11 filing, the Times reiterated Tuesday, "Documents and analysis are close to completion, and a filing could come in days." Though, it says, the threat of bankruptcy could also be a negotiation tactic for Ergen's benefit.
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