Every so often I read a post at another site that deserves repeating . . . such is the case with a classic Relmor rant appearing at the KOAT site on 2-28-10. This Relmor-Rant is a classic three-parter and is a good history lesson for those who bought-in after the Liberty rescue.
Whether you agree with him or not, you must respect the fact that Relmor calls it the way he sees it . . . there is no sugar-coating here and a little rough language . . . the link is provided at the end of Part 3
Here is Part 1:
Relmor responding to the speculation of Siri buying-back the Preferred Shares from Liberty:
Its not happening. There is no way Sirius would convince Liberty to do that. Its a pipe dream. When you steal 400 dollars in value, for instance, you wouldnt sell it back for 100 dollars. Sure you made a 100, but you lost 300 dollars. So if Sirius XM wants to receive the percentage of the company back,they would have pay even now future value, forget current value. No asset sirius xm has, other than more ownership, ironically, to sell anyone. In the future they could be selling leased band width, possible lease or sell content, or some type of distrubution deal, but usually people or companies dont pay for services with ownership. Thats what Sirius did to get to this point. They basically whored themselves out, ownership wise, to get money to move forward. It almost worked. Almost.
FCC and the economy sealed the deal on that. Banks too. Dont blame Ergin, or any other fantasy theory from Mel or anyone else.
If Sirius could have gotten out of 2009 with full ownership, they would never have needed to whore itself out again. They couldnt do it however, as Sirius XM as a privately owned company, in media, with a huge future, just has way too many enemies, with the siutation 2009 presented. It was a no brainer for the cocksukcing banks and their insidious agents of evil to play this how it did. The reward was complete control of Sirius XM.
"Luckily", say that dripping with sarcasm, Liberty stepped in and removed that option of 100 percent take over, so ya, i guess you can say we should be somewhat greatful, we are still in the game. This is not a rant against LIberty, however, so I continue...
The key to making sirius obtain new money, was the May bank debt, period. Feb was solvable, if May was extended. Then you till Dec. to get a real loan, like they did, twice in 2009. Yes the banks caused this 100 percent. Look at what a killng they made on this whole deal from the merger on. Plus they got all their cash due in 2009 fro Sirius XM.
I want someone to tell me, if feb was removed, and the bank debt extended, Sirius would not have been about to qualify for money to remove Dec bonds, if COH wasnt enough. Or that a realistic equity price could have been reached for a debt for equity swap at that point. Some of the December debt due would definately have been able to be removed with some shares for sure.
Ergin couldnt gain any control over the largest debt due in 2009, the bank debt, the banks REFUSED to extend.