As a current bondholder (Two 8/1/2013 @ 9.625%), I would be willing to buy additional bonds if they were actually through Sirius (or it's direct representative) to pay down existing debt. I would doubt they could be made Secured since that would put this ahead of other debt holders, some of who are on the board of directors. Issuing convertible Preferred Stock would also be a possibility.
Is it throwing good money after bad? Maybe. I am still buying shares at this price so I am willing to take that chance. I like the idea of Convertible Preferred Shares. If the price of the common stock rise because the debt issue is gone or reduced then the preferred shares will rise because they are convertible to a certain number of common shares. The share price of the convertible preferred stock could be a couple of dollars vs the usual $1000 denomination of bonds so that small shareholders and customers could purchase them them through their broker