Is Bankruptcy In The Cards For Sirius XM?
News came out late in the day that Sirius XM has hired advisers to prepare for a possible bankruptcy filing. The result on the equity was nearly instantaneous as after hours trades took the stock down well below a dime.
While the reaction was that this news was unexpected, it shouldn’t have been. Rumors that a bankruptcy plan surfaced in December at the shareholder meeting. When I was asked about it, my answer was simple. The company having a plan in place for bankruptcy was prudent business. The existence of a plan does not mean that it will be used. It simply means that it is an option among many that is on the table.
Now, with the news surrounding Charles Ergen, a possible bankruptcy scenario has to be considered, either forced, or through the company itself.
Sirius has hired Alvarez & Marsal; Simpson, Thatcher & Bartlett; and Evercore Partners to look various options that may well include a bankruptcy plan. Evercore, Simpson, Thatcher & Bartlett have been working with Sirius XM for quite some time.
Some of the quotes attributed to this latest news should be very concerning to shareholders. However, everyone must also consider that the company, nor Ergen have made any definitive statements. So far this has been a battle of “people close to the company” or Ergen. We should not forget all of the people who were “close to the company” that predicted the merger time and time again, only to see it delayed for months afterward.
The New York Times stated, “Sirius has been working with the restructuring expert Joseph A. Bondi of Alvarez & Marsal and the bankruptcy lawyer Mark Thompson of Simpson, Thatcher & Bartlett to help prepare a Chapter 11 filing, people close to the company said. The documents and analysis are close to being completed and a filing could come within days, according to a person familiar with the matter.”
That was enough to make a selling frenzy happen in after hours, and to send e-mail alerts flying like never before. Should investors rely on this latest news? That is a personal decision for each investor. They need to consider their risk tolerance and seek advice from a financial advisor to reach a decision that best suits them.
From my perspective, the news is not shocking given the recent events. There is a large stakes poker game happening here, and the shareholders are the chips on the table. Ergen is building leverage. The question is whether Karmazin has an ace up his sleeve. With $175 million due on debt in a few days time, and and a substantial payment to Major League Baseball also coming due, the company needs about $225 million. Should they take care of those issues, the next hurdle is in May.
As has been reported by many sources, the leak of bankruptcy news may force Ergen’s hand earlier than he would like. In the end, if Ergen wants Sirius XM Radio, he has the financial ability to make it happen. For shareholders, it is a wait and see situation.
One thing to remember is that there have been many opinions surrounding the Ergen issue, and this latest news about bankruptcy. Not all of these theories can be right. Taking a step back, and looking at the issue with fresh eyes tells us a few things that are most likely:
1. Ergen has an interest in Sirius XM Radio.
2. If Ergen were to make a move, FCC approval may be a lingering issue.
3. Ergen buying debt lowers his risk in his maneuver. If his plan does not go down the path he wants, he should still be able to recover at least a large chunk of his investment.
4. Sirius XM is having their hand forced in some ways. Putting a bankruptcy plan in place is prudent. Leaking that news is shows that the final outcome is not yet in place.
5. Sirius XM should have over $400 million in cash at the end of Q4 2008. Using this cash to handle the debt and the baseball deal would hamper the company, but could also buy them time. The question is whether they can negotiate the remaining debt, or whether Ergen has to wait out for the next cycle.
6. The company should be conducting their Q4 conference call in the next two weeks. With little news coming from Sirius XM, investors are quite nervous, as the next several days will be critical to the future of the company, as well as shareholders.
As investors, the only thing that can be done is to absorb the news, formulate your own opinion, and act accordingly. Until there is definitive word, this equity is on a roller coaster ride.
Position: Long Sirius XM Radio
Well…it’s too late for me to sell now….so I’m in it till the end. Although it’s a sickening feeling in the pit of my stomach…there is something almost bordering on excitement because it looks like we will finally have an end to this madness either way in a matter of days.
I was going to throw another $500 into Sirius today…but the wifi connection at work went down. Now I am glad. The question is, will I just say what the hell and average down one last time below a dime tomorrow??? LOL.
I mean I don’t want to lose another $500…but if this DOES turn out to be a high stakes game of chicken Mel is playing and I get to buy one last time at it’s LOWEST price yet….well…that would be enough to make up for the emotional hell this stock has put me through the last few years.
I probably won’t pull the trigger tho.
Anyway….lets have some fun. IF Mel manages to force Ergen’s hand….and EchoStar makes a bid for Sirius….how much per share do y’all think we’ll get if we’re lucky?
Just what are the dynamics if Ergen tries to buy the company and the FCC rejects it? One would think Karmazin would take an offer from a company that was the most likley to be approved?
Can Ergen buy the company with no FCC approval and just break it down for parts?
Good read Tyler!!
Hey Friggin, I am in the same boat as you.
(Anyway….lets have some fun. IF Mel manages to force Ergen’s hand….and EchoStar makes a bid for Sirius….how much per share do y’all think we’ll get if we’re lucky?)
If we are lucky, 4/5 bucks a share. If SIRIXM had no/little dept we would be at this pps anyway.
But probably a 1.00/less in the current situation we are facing.
Good luck everyone here thats a shareholder!!!
(SSSSNNNAAAAPPP!!!!!!!) Yup, I just snapped!!
7500/shares
That Mel’s book from this office bathroom
The VIP bathroom with the gold toilet and heated seat.
What a piece of shit stock, wish I didnt waste 3 years watching this stock everyday. Well I am holding to the end, good luck to everyone
great new show to air on surius the Bernie Madoff & his pal Mel with guest staring cry baby Howard and his $5,000,000,000.00 I will retire BS story. (FU all) I cancel my 5 sub just NOW
Byeeeeeeeeee
I believe that it is a game of chicken, and a high stakes game of poker. I would not think that Mel would just fold his tents and go home, that does not make much sense. If they have the cash for the February payment, they should make it and buy themselves the time to negotiate further. Mel did say that by March 1 he hoped to have a new financing deal in place. Did Ergen come along and upset the apple cart? Is this Mel’s way of turning the tables? Is he trying to get some of the other big time shareholders who stand to lose in excess of $25 million dollars exert pressure in thier own way to help Sirius get the loan refinancing they need? For a long time I said that Mel should let XM die on the vine; instead, he took on all of thier debt, and here we are today, at this point in time. I think that at the end of the day, this “announcement” is similar to the filing to do a reverse split at 50 to 1: all done because it was a necessary evil, not so much that it would come to pass. At the same time, how much in the way of corporate assets is Mel spending on all these outside advisers, anyway????
I have read at several places that Sirius spreading the BK rumor would put pressure on Ergen. What would be the purpose of this, though? Basically saying “either make us a good offer or we’ll just go BK”?
Also, I wonder if the BK “possibility” is a result of Ergen buying up debt and hardballing Sirius and not wanting to negociate (trying to push them into BK). I saw that suggestion the other day, and agreed with most people that he would be more likely to make an offer. But, after reading that he already attempted that, and now with the BK “news”, it makes me wonder if he isn’t just taking his only other option to get Sirius.
I’m confused as to who has the “leverage” in this situation.
Tyler,
Your article maintains a neutral and factual account of the newest events/rumors. It is hard to find this kind of blogging when it comes to Sirius XM. If Mel does have a card up his sleeve to play, we will see it soon. I don’t know what his plans are; as most people commenting and those writing in the WSJ or NYTimes fail to mention, we have no official comment from Sirius. In my opinion, after winning DOJ approval last spring against tall odds and then squeaking through 3-2 with the FCC, I don’t see anything positive coming out for the longs with this equity. One thing though, just for people to keep in mind. Remember the evening that we won the FCC approval? That afternoon, it was ‘rumored’ that Tate was wavering and bickering with Martin, and that the vote might not approve the merger. I just wonder if now, just like then, the rumors via lazy reporting might not be as everyone thinks.
Today was perhaps the worst day in my life, and it had absolutely nothing to do with the market, or Sirius or money, or anything else of a “trivial” nature.
I would like to remind everyone that even though you may currently stand to lose a lot (or a little bit) of money to always keep things in perspective and save a bit of attention for things that really matter.
Mario,
without you saying anything more let me wish you the best in dealing with the actual things in life that matter,….. good luck and best wishes to you and yours…
Sorry to hear your news. Good luck Mario for the future.
Keep strong. Good luck!
Tyler,
Thanks for some sound… and timely reporting to help investors put things into perspective. This is turning out to be an amazing test of investor fortitude. As you say, with the COH, tomorrow or next week is not the last call for this company….. The fact that not one quote from the parties has been published is a good sign to me that negotiations are ongoing. At this point we can probably concede that Ergin is in the negotiations for shares (voting rights) for equity. With the shares given so far in this Feb 09 debt averaging .29/ share, I don’t think Mel is looking to give voting rights away cheaply to Charlie at this point. At least that’s my take……
By the way here is the filings on the debt exchange:
Edgar filings:
On: 10/20 – 67.04Mshares went to pay $30.5M.
On: 10/29 – 66.19M shares went to pay $50M.
On: 12/22 – 108.1M shares went to pay $15.64M.
On: 01/05 – 45.2M shares went to pay $6M.
On: 01/14 – 100M shares went to pay $13M.
I know there was another $10M paid or exchanged but I can’t find it. I think Maddoff might have them.
The above shares represent .387B shares for $115M of Feb 09 debt or .29 / share.
>>With $175 million due on debt in a few days time, and and a substantial payment to Major League Baseball also coming due, the company needs about $225 million. <<
So we went from needing $175 million to needing $225 million.. Actually, it’s lots more than that. Looks like someone finally started looking around at the other short term liquidity requirements regarding the MLB baseball payment (60 million). After I had to point it out to everyone. Hey let’s not forget the the annual Copyright Royalty Board payment due in March also.. That’s ~6% of subscriber revenue. That could be close to 100 million on it own. Last year XM borrowed 175 million to make the MLB/stand alone XM Copyright Royalty Payment.
They had 360 million cash and cash equivs at 9/30/2009. Folks. They just don’t have the cash. Even if they could refi the Feb. Debt. They would need additional capital to continue operations. It’s not brain surgery. It’s simple mathematics.
You will never get your Q4 CC.
Maybe the “experts” around here could add in the Annual Copyright Royalty Board payments due in March into the equation??? Come on folks. Learn to read and SEC statement.
And so it goes,
PCSTEL
The reason the company loses money every quarter is that these expenses are operating cost that any good accounting firm should be accruing and reserving cash for…. these are not surprises, they are expenses to the operation…..
yawn…
yawning has gotten you where you are today.. Maybe reading is more profitable than yawning?
And so it goes,
PCSTEL
If there isn’t a conference call I’ll admit I was a fool. If there is a CC and there is no bankruptcy, will you admit you’re one?
(not meant for you cos… you replied a millisecond before me.)
No harm.. no foul….LOL
That must be a Country millisecond… posted as 13 minutes later to me…..just kidding
Hmm… strange… your reply wasn’t there a few seconds before I posted.
Bingo!
This is exactly why I stated in another thread that using cash on hand effectively wipes out ALL their operating capital.
The only thing this would do is by them some time to postpone the inevitable.
I wonder how low the stock price has to go before they actually get de-listed! LOL!
What can I say after what everyone else has said since the BS talking heads article via the NYT.
IMO..this is a ploy that has everyone in panic mode so a huge selloff could happen. I imagine that this is Mel’s way of trying to pressure the holders of all debt due. It might work.
I would think that all the institutional holders would have dumped as well and the AH trading volume would have been in the billions not just 12 million. It traded in last few days over 100 million shares on all the rumors.
No matter what I will hold my small investment of $12,000. (avg .59) and wait and see over the next few days what happens.
Really thinking that BK is not a reality…JUST A WISE THREAT to shake things up and shake out the scared holders. Mel will leverage this threat to get funding completed and F&@K all the NON-BELIEVERS!!! REMEMBER Mel loves to gloat and smurk. He wants to comeback as the hero of the year in such a big way…especially during a disasterous market. This will feed his ego even more and he can tell everyone …I told you so…don’t mess with Mel.
It is starting to work SiriusHope. I am scared but they haven’t shaken me out…..yet. Hope you are right!
many times when I sue a company or individual, I am told that if we win, they will immediately file bankruptcy.
usually, they don’t file.
most times it is merely leverage in negotiating a settlement…most cases settle.
have companies filed bankruptcy on us, yes, but usually well after when they threatened to do so, after all else failed.
is this a negotiating tactic? maybe, I agree with some of the thoughts above. But, I don’t know.
Keep in mind those that are truly in the “know” are not talking unless they are intentionally leaking for negotiating purposes. Only those few really in the know, know what the hell is going on.
all I have to say is WHAT THE F*** IS GOING ON!
And, if you screw us mel, all my subs will be canceled, and I will talk to my class action lawyer to see if we have a claim against you and your other exec’s for failing to exercise your fiduciary duties to maximize shareholder value.
Most of the hardline shareholder/subscribers on these blogs have pre-paid long term contracts with these companies. Go ahead and cancel all your “subs”. They have your money, and if you cancel. That only means they can keep all of the money instead of having to pay a royalty percentage. Works for them.. Why do you think Mel wanted everyone to lock into a pre-paid agreement a couple of weeks ago.
Thanks for the $$$$
And so it goes,
PCSTEL
no, they don’t, not in my case:
auto sub expires in August.
home sub expires in December.
let them see a way to get more money out of me if they bankrupt my shares…sorry, they can’t.
Its too late Shark I already feel SCREWED!! LOL!!
Scary Sheet when you have alot of dough riding on this, Huh ?
Only the bravest and foolish out here tonight……………..
John/163888 . . . I read ur posts over at SA . . . I’m down $102k plus expired options from ’06 . . . any thoughts about a joint effort to try and pierce the corporate veil?
piercing the corporate veil means they could go directly after the owners, meaning YOU THE SHAREHOLDERS! you don’t want to pierce the corporate veil AND SUE YOU do you? what you would want to do is sue the management, executives, officers and directors for breaching their fiduciary duties.
correct. the execs & board members that have assets
Okay…. keep in touch is what I think RK is saying…
yes, precisely. thanks cos
I have been a shareholder for a long time, I truly believed in this company. I can’t help but feel that Mel has run this company into the ground. 65,000 shares @ over $3.50 Thanks MEl!!!!!!!!!
you can be one of our lead plaintiffs to sue mel personally for breach of fiduciary duties if my class action lawyer accepts my case if they bankrupt on us.
Check and see if they’ll take the case anyways. Just being prudent in our preparations. Wouldn’t want to waste any time….would we??
btw . . there is an “individual action” now pending against Madoff . . . apparently there supporting case law . . . reality is that the lawyers get reach, we get pennies and a pound of flesh … all depends how much satisfaction can be derived from the pound of flesh
Class action is a nuclear option . . . I hope it does not come to that
should read “lawyers get rich” (time for bed; wiped-out in more way than one)
Sirius XM should have over $400 million in cash at the end of Q4 2008. Thats Mels bonus before the bankruptcy watch and see. He will be on CNBC with Jimmy his bud doing the mad money show 5 days a week
I thought it was illegal for the media to publish a story without having investigated and researched their sources fully. So Sirius has been working with the re-org lawyers for weeks now, so why leak the info now? In my experience you normally just wake up to hear you’re investment is toast and the company filed. Why do they want this to be public knowledge? Well it seems a very dangerous way to play. Great they force Echostars hand but who is going to buy a radio now? Also, existing subscribers are likely to jump ship to. Ever get the feeling that you are being patronized and manipulated? Is it possible that a CEO could get away with plunging a company into bankruptcy rather than sell a controlling concern and avoid self destruction? How smart a move is it to wipe out 50% of your stock value to improve negotiations with possible buyers. That just doesn’t seem to make saense. Apologies for an article which has more questions than answers…
Bankruptcy…NO WAY. Brandon said…….”As for the thought of bankruptcy that these shorts have bet the farm on, it will not happen. Sirius XM listeners tend to be SIRI investors. Bankruptcy would all but put Sirius XM out of business permanently. If you thought the cries that followed the channel consolidation were loud, imagine the bang that would follow a bankruptcy announcement. In my opinion, it is not even a remote possibility”. AND I QUOTE AGAIN…”not even a remote possibility”.
While he still may be correct and he clearly states “In my opinion”, the above quote from January 2nd was TOTALLY irresponsible from someone who apparently has the credibility to write articals on this company in this and other forums. A total novice would have been able to conclude that a BK was “remote possibility”.
Just from my casual observation the last few hours, the threat to cancel has been ratcheted up maybe 10,000 percent. Both on this board and the Yahoo Finance message board. Does that translate to half-a-million yet? “Are you threatenin’ me?!”
Like I said earlier….
>>Most of the hardline shareholder/subscribers on these blogs have pre-paid long term contracts with these companies. Go ahead and cancel all your “subs”. They have your money, and if you cancel. That only means they can keep all of the money instead of having to pay a royalty percentage. Works for them.. Why do you think Mel wanted everyone to lock into a pre-paid agreement a couple of weeks ago.
Thanks for the $$$$
And so it goes,
PCSTEL<<
I have seen on Etrade and AOl Finance that the earnings call for Q4 is scheduled for earliest 2/23
– Etrade reports 2/23
– Aol Finance reports 2/23 – 3/6
Mel said he would have something by March 1st. I don’t think they file or even say anything this week, until maybe Friday. Markets closed Monday, I think & Feb debt due 2/17 unless they buy some time.
What is interesting is that I spoke to Paul Blaylock personally today at 1:30 PM . . he answered the phone on 1 ring and was very cordial and professional. I specifically asked if any official announcement had been made as to Q4 earnings release. He said “no” but that they were “targeting the last week of February” due to March 1 filing requirements . .
Someone here pointed out, however, that ETrade has been reporting Feb 23 before trading. I checked ETrade and they are in fact reporting that.
so, whatever does actually happen on 2/17, we will not have the benefit of knowing the COH situation in advance.
Intentional timing?
That is an estimate, in their opinion. You can find an next report date estimate for all companies publicly traded on their and most sites.
If they default on a payment of debt due, we will get an 8K (or SEC filing), and a press release. Don’t know if that is Friday or Tuesday because of the Holiday.
Blaylock confirmed principal due date of 2/15, which is a Sunday . . . but Monday is a legal holiday, so Tuesday 2/17 would be the default date.
He told me that a “grace period” is embedded on the interest payments but whether or not the grace period applies to principal would require a legal opinion . . .
Any thoughts?
Thoughts, I have many…. I think default reporting on maturity principle payments, or interest payments over the term, represent a “Material Event” that shareholders, under SEC requirements, are required to be informed about… but again that is just a thought….
If the FEB bonds are trading over 100. Why would BK be pushed as in days??? Doesn’t equal.
I spent many many days and weeks sick to my stomach when the merger happened and I lost 80k in just a few days.
My stomach is fine. I am keeping my front row seat. I keeping my shares. Not adding not selling. I’ve said before that I am interested in litigation that makes sense. So if Shark or someone else get’s something rolling I’m interested. Please email me at yahoo.com
Now, I spoke to an attorney at the end of 2008. Big time firm. Coughlin,Stoia, Geller, Rudman,Robins. At the time they had not opened anything up on Sirius. So…..as Shark stated above, if we BK, I’m sure the opportunities will be there.
On another note. I’d prefer the common to stay floating. I’d prefer that management continue to work through the issues of today and work towards providing investor results in the future.
Also, should this board disappear. I want to thank all on this thread for your discussions regarding this stock and many other things. I’ve enjoyed them all.
And to Tyler. Thank you again for a common sense, grounded article. Solid as always and very timely considering the AH share price.
socal . . . much enjoyed the “running talk” etc. (we have way too much in common)
will keep in touch through this site or perhaps join you and others if working the legal channels will bear fruit
Good luck out there Socal!!!
Its not over for us yet, but just in case, I have enjoyed your comments and insight!!!
Be well brother!!!! 🙂
SCRF Dread SRK and the rest..
I enjoyed your post SCRF..
We are right back to wait and see.Like the song says “Something’s happen here but I don’t know what it is”
imho
vaporgold
I may have made a mistake and sold all my shares AH. I bought MTL instead, hoping to recoup my losses. Good luck to all !
I may sound like a lunatic but…I will throw another 500.00 at it and gain 10,000 more shares at .05…what the hell…no risk no gain.
I think we will be surprised how many buyers flood in tomorrow before the bell.
I just transferred another $1200 and am hoping to buy whatever I can at .06 in the morning….. but that’s just another lunatic talking to you right now.
If this turkey goes below .05 I am with you!!!
I told you so.
All the wishful thinkers here actually believed Mel is a genius.
If destroying a company’s stock value makes one a genius then yes, Mel is a genius.
As a practical matter SiriusXM, as we know it, will change drastically regardless of when the filing actually happens.
For the record, it WILL happen.
Tim,
I have always liked all the Basher’s odds better than those like myself who invest and believe in the technology and company. You have an easy position to come from… at every negative turn, you can come here and tell us that we were wrong…. to what end??
I believe in the technology.
When it comes to my money I do NOT think with my heart.
I no longer believe in the company for the following reasons.
1) Customer service is terrible.
Cause = Poor Management
2) The stock is essentially worthless.
Cause = Poor Management
3) Not a single usable portable unit that actually works.
NiceMac develops an iPhone app essentially over a weekend but Sirius can’t come up with one that works.
Cause = Poor Management
4) Not a single ‘cross-platform’ device available or even in the queue.
Cause = Poor Management
5) Poor use of it’s operating capital by making deals for talent that no one listens to.
Sorry, but NO ONE is listening to Martha Stewart on SiriusXM.
Cause = Poor Management
Get rid of the ENTIRE SiriusXM management team.
They have failed as managers and as fiduciaries.
Remove the current management and they have a chance.
If Mel is still left in charge, let it die.
so what if you have not been invested. why are you hear pleading to be heard….
Tim Markoski = Hartlieb
At least I have the courage to put my own name to my statements.
That’s a lot more than I can say for most of the “true believers” in here.
oh i get it now….. not!!!!!!!!!!
So what happens if they file Chapter 11? Will I still have my shares? They could possibly do a reverse split couldn’t they?
If they file, can they renegotiate these ridiculous deals they’ve made with Howard, NFL, MLB, …? If they do, then they could improve their situation greatly. I don’t want to lose my investment, but if a restructure helps them fix these deals, then maybe it’s for the better. Better IMO assuming I get to keep my shares, or they reverse split and my overall investment goes up because the share price finally goes back to normal.
If they file, your shares are worthless.
In the event of BK, it is likely your share will be cancelled. Ownership will pass to the debt holders starting with the secured and senior debt, then the bondholder and preferred shares, if any. If anything is left, the common shareholders would get it.
Well that sucks. Maybe I should get out now while I have something left.
Assuming cash on hand is sufficient to pay interest and principal on the current February debt (about $175 million), there would not seem to be any need to declare bankruptcy at this time. Then, with the $50-60 million due major league baseball, if for any reason SIRI could not pay that in a timely fashion, would that be a need for bankruptcy at this time or would whatever contracted default provisions trigger a penalty or a lawsuit, rather than a bankruptcy.
So, if it is true that if there is no current need for bankruptcy, the first possible need would be May (if, in fact money or continued financing were not available at that time).
Of course, the threat of bankruptcy can influence a potential suitor, and perhaps that is the case here.
Additionally, SIRI could do a reverse split and then float a large number of shares. Of course the stock price would go down because of the dilution and perhaps negative press, but that would bring in money to the company.
Please comment to let me know if my thinking on this is sound.
Thanks all!
Hey Mel… Hey Howard ! You guys are both filthy rich, right? The shareholders, who have invested a much larger percentage of their money than both of you ever have or ever would, are about to be wiped out. Both of you will still live a lavish, want for nothing lifestyle regardless of what happens with this entire fiasco. On the other hand, the common shareholders, who steadfastly supported this company and can least afford to lose their investment, will in some cases be financially devastated. At the very least, there will be a major short term negative impact on many people.
I was just wondering how the two of you feel about this situation, or if you actually do have feelings for anybody other than yourselves? Oh yeah, a couple of more questions! Do either of you have a conscience? Lastly, since you are both obscenely wealthy, and both of you have professed your love for satellite radio, why on earth would you not grow a set of balls and come to the support of the people who made your careers – the fans and the listeners?
Maybe people in your tax brackets don’t think about stuff like this. You really should, though. It would be the right thing to do.
Tell us how you really feel Steve O!!! LOL
Be well brother!! I am going down with the ship!!
🙂
e-mail Mel
[email protected]
dread,
I’ll be right next to you; I always wondered what it would have been like to be on the Titanic! This is the next best (or worse) thing, I suppose. Don’t worry, dread – we’ll be OK. At the last second, Mel will throw us some cement filled life preservers and a book entitled “How to swim – by Stephen Hawkings.” Good old Mel – he always has our backs!
As always, great to hear from you!
You still got it Steve!!! 🙂 LOL!!
Tyler,
I know I have to decide what’s right for my investments in SIRI, but I just want to say thanks. When I look for news, etc., without fail I await your articles. You keep me calm and help me to think about the big picture.
So appreciate all your hard work and dedication.
Thanks so much for all the great read – please keep them coming…
I read something that said ergens offer still on table. Anyone?
NEW YORK (Reuters) – “Ergen has offered to inject several hundred million dollars of capital into the satellite radio company, though his plan does not involve buying out existing shareholders…”
______________________________________________________
I understand that bankruptcy would wipe us out, but I’m very confused about any scenario wherein Ergen makes an offer that doesn’t include shareholders. What kind of a deal outside bankruptcy can legally and intentionally wipe us out? Can anyone explain this?
It would seem that MLB would restructure the contract if they want any money at all,,If Sirius goes BK, the they would get nothing,, so they will want to do something ot make sure they get something..
I am so happy to be able to get in around .06. This is a great oppertunity for all investors. I can not wait for Mel to Report on these silly hype stories of BK. It will be in the form of stating how everything was traded for shares and refinanced. What a RUSH!!!
so micheal hartleib was correct…on this point also.