How long can Mel go w/o getting a deal done for the 2009 debt? I know--the credit markets "suck" (to use a favorite Mel expression); however, he needs to come up with something fast. And, I don't mean another round of bad financing like the deal he 'had' to do to close the merger. I still favor going private for a few years to get the company's debt in order and to allow for the new products to hit the market. Once Sirius XM is more stable, then go public. Interested in your thoughts.
I could be wrong, but I think I am right. According to my calculations, Mel is capable of lending the company his own money. His net worth could easily be in the billion dollar range. Between Mel and his long time good friend Howard Stern, they could handily fix the debt problem.
The market makers are pressuring Mel to put his ass on the line. Once, Mel was the real king of Media. Not a mouthpiece like Stern, but the real king. Mel was golden. Imus called Mel The Zen Master. A lot of envious, vendictive and jealous guys like Cramer and his GS buddies want to knock Mel down. They are laughing their asses off right now at Mel and his unsophisticated SIRI shareholders.
They are happy to have reamed Mel so hard. Think of the low level executives that Mel lambasted for buying too many magazine subscriptions for the office or buying $20 lunches (in 1990 dollars) on the company expense account.
Years have passed since then. Where are some of those jackals now? Where are the dudes that Mel stepped on on his way to the top? They are laughing with Cramer.
Mel said don't bet against him. Mel said if the people that bet against him get screwed, so be it. Mel's UGLY finance deal with the convertible shares that Cramer helped to corral him into, has facilitated this bloody mess. Mel's hand has been forced. He knows he cannot do a reverse split with the convertibles still out there. Mel will have to get a bank loan within the next week or lend the money himself.
(Of course, the converts aren't due til February. The important step is to secure financing now and make an announcement ASAP. Otherwise, things will get uglier.)