I have many people asking me about a pre-packaged bankruptcy rumor. Here are my comments:
1. I have seen nothing to indicate that the company has a "pre-packaged" bankruptcy plan. Until such time that someone can produce something that is verifiable, I will take it with as much value as I place on "Apple Rumors".
2. I would not be surprised in the slightest if Sirius XM, being in their current position, has not considered many differing options, inclusive of speaking to bankruptcy attorney's. They would not be responsible managers if they have not considered several options. That being said, I do not think bankruptcy is among the top choices in the direction for the company.
3. The company now has many more authorized shares to work with (3.5 billion more than they previously had). This gives management a lot more latitude with respect to financing and operations. These additional avenues are all aveneues that would be taken before bankruptcy is considered IMO.