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Thread: Bankruptcy, yes or no?

  1. #21
    jmm232 is offline
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    Quote Originally Posted by Newman View Post
    It is the December debt that worries me, and always will until something gets done about it. At current share prices, they could sell all 4 billion outstanding shares and come up with 400k - BARELY enough to pay off the debt. (Actually, there is 433 billion left, but they still have some cash).
    Better get out that calculator. At the current share price, 4 Billion shares would bring in $440M (assuming no dilution or further reduction in share price).

  2. #22
    m4svt is offline
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    I'm going to say no, although I've been real optimistic since 2004, lol. I think Mel has a lot of money invested which shows some confidence. I think we have a bit of head room with the new shares that can be issued. I think the price increase will help (I don't think anybody thought they would do that, I never expected it). I think theyve put too much work into it with the merger and everything to just go BK 6 months later... Plus the credit markets getting better... I just wish that we would have some insider buying, that would make me feel a lot better. But then again if i lose it all, fukc it that's the risk i took 5 years ago.

  3. #23
    just sirius is offline
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    Homer

    If you are correct...and I have no reason to doubt your knowledge...that explains why no insider buying by our fearless leader and the BOD. Thanks for your input. I feel better about the near-term future of SiriusXM.

  4. #24
    Greenland is offline
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    Sirius @ $ 43.68 ? !

    lol ! seven years from now. i hope this helps that other post. funny reaction from you guys about the bankruptcy , this company will dominate the airwaves. not now , but years from now. A self-made millionaire does like to fail and i like to think this company is his last project before he retires from business. peace out !


    end of transmission

  5. #25
    Newman is offline
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    Homer and SiriusOwner:

    I do know about bonds being callable, but what I am asking about is different.

    Currently, the December 09 bonds are trading at about 45 cents on the dollar. Is it possible that the company can go out and repurchase these bonds on the OPEN market, paying $450 for each $1000 in debt? If I can buy that deal right now, why can't the company? That would change that 433 million due into about 200 million. Any way this can happen?

  6. #26
    homer985 is offline
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    Quote Originally Posted by Newman View Post
    Is it possible that the company can go out and repurchase these bonds on the OPEN market, paying $450 for each $1000 in debt? If I can buy that deal right now, why can't the company? That would change that 433 million due into about 200 million. Any way this can happen?
    Newman, I wasn't referring to calling the Bonds -- I was saying that there probably are convenants within the indentures that prevent them from doing just that. For example, here is a covenant from one of XM's bonds that restrict payments that XM can make. I broke it down for simplicity...

    The "obligors" named are XM and XM Holdings... "direct or indirect holders" are the shareholders.



    7.5 Restricted Payments
    http://idea.sec.gov/Archives/edgar/d...768/dex102.txt


    Neither of the Obligors shall directly or indirectly (through a Material Subsidiary or otherwise):

    (i) declare or pay any dividend or make any other payment or distribution on account of the Equity Interests of either Obligor... ...or to the direct or indirect holders of such Equity Interests...

    (ii) other than pursuant to a Parent Company Merger: purchase, redeem or otherwise acquire or retire for value any Equity Interests of an Obligor or any Affiliate of an Obligor;

    (iii) make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value any Indebtedness that is subordinated in right of payment to the Notes except a payment of interest or a payment of principal at Stated Maturity



    -------------

  7. #27
    Demian is offline
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    Homer,

    That brings up these questions then....

    Can Mel or any members of the BOD personally buy the bonds on the open market or does that fall into the "indirectly" category?

    How would one find out what the "convenants within the indentures" are? Is this information made public in any filings?

    I would rather Mel buy the bonds up than SIRI stock.....

    If it is allowed, I assume it would fall into the insider trading rules and restrictions - along with the blackout periods etc...

  8. #28
    Demian is offline
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    Quote Originally Posted by homer985 View Post
    The "obligors" named are XM and XM Holdings... "direct or indirect holders" are the shareholders.
    So anyone who owns SIRI stock, thus being a SIRI shareholder, is restricted from buying the bonds, but the bond holders can still short the stock? That doesn't sound right - or even fair in a free market economy....

  9. #29
    Newman is offline
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    Homer: Thank you for the answer.

    I can understand them not being able to purchase outright, but the deal also says that they cannot make payment to or retire any bond until it matures. How do they do the equity for debt payments then?

    I suppose that any of the provisions can be waved if the bond holders agrees, which is where that would apply

  10. Ad Fairy Senior Member
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