Originally Posted by
Newman
Reverse split does not save the company from bankruptcy. A reverse split is all a numbers game. You either have 100 shares at $1 each or you have 1 share worth $100. It does not help the company raise any money and has no affect on debt. Mel has sated that the reverse split issue is simply to be on the table in case they need to use it for NASDAQ listing requirements. The day after the RS was approved, Nasdaq again extended the listing requirement ban, meaning that Sirius really does not have to worry about delistment until March of 2010 at the earliest and only if the Nasdaq does not change it's rules again.
Bankruptcy is a whole different issue that is not tied to the reverse split at all. Your question was phrased as either or. There is no either or when it comes to RS and BK. One has absolutely nothing to do with the other. That is why winagain said that they could both happen or neither could happen. One has no affect on the other