SIRI Intraday Updates for the Week of 2/16/09

Peter.Lauria (Peter.Lauria@nypost.com)

"my sourcing is solid and the story i wrote yesterday is accurate..but that doesn't mean sirius will do a deal with liberty, though..what sirius ultimately does is still being decided..as for why no one is picking it up, maybe they're upset because i got to it first.."


I wrote Peter yesterday and asked him a few questions about his article in the NY Post on Friday evening. That is what he had to say back!


http://www.nypost.com/seven/02132009...ius_155024.htm

Friday's optimism has waned over the past several days. Fox Business News had a round table discussion with four of their on air reporters. All of them believe bankruptcy is in the cards. Further, the threat by Brown Rudnick LLP, to oust Mel and the board if BK is filed is an indication which way this is going. I'm having a very bad feeling about this.

It's getting Iagoey in here.

"This is the night
That either makes me or fordoes me quite."

etc...

Quote:

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Originally Posted by SiriusXMInvestor

Fox Business News had a round table discussion with four of their on air reporters. All of them believe bankruptcy is in the cards.

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Of course they did - their channel was dropped off of Sirius/XM.......

am hoping cool heads prevail;
i don't see bankruptcy as ever a suitable
means as a way out, when one has at their
means other ways out of a dilemma;
no matter how you look at it, despite what
financial benefits may arise from filing "for protection,"
my response is, "of course there are benefits.
You're unilaterally changing the terms of previously agreed-to
obligations, with the power of the federal gov't backing you up."
But at the end of the day, when other means provide a possible
way out, I see a resort to bankruptcy instead, as dishonorable.
I know, business is business, but imho if can't be conducted honorably,
it ought not be conducted at all.

Fox Business again stated that an anal-yst said the Liberty deal is "unlikely" and BK is the only option.

A group of creditors have threatened to remove Sirius XM Radio Inc. CEO Mel Karmazin if the company chooses to file for bankruptcy over a striking a deal with an investor that would allow it to remain solvent, reports the Wall Street Journal.

Additionally, the WSJ is reporting that a final decision by Sirius XM's Board is expected Monday.


"Creditors will act quickly and definitively if they perceive that management is acting in their own interest and not in the best interest of the estate," Edward Weisfelner, a partner with Brown Rudnick LLP, the law firm representing the creditor group told the Journal.

"The board of directors should carefully consider the ramifications," he added.

In response to the creditor threat, Sirius XM said in written statement: "The management of Sirius XM is continually working to ensure the best possible outcome for the enterprise." (If I remember correctly, this is the first official communication from the company about the current situation.)

Sirius XM's board reportedly met this weekend to weigh on the company's course, including an offer from Liberty Media, with a final decision expected on Monday, reports the Wall Street Journal.

If Mel Karmazin does file for bankruptcy, creditors could ask the bankruptcy judge to remove management and put the company under the stewardship of an independent trustee. Such a move is a difficult one, bankruptcy experts say, as judges tend to be favorable towards management.

But the argument that bankruptcy may be preferable to solvency may be a hard pill to swallow for the company's creditors.

"You have to be a little skeptical when you hear that from the same people who drove the bus into the wall," Weisfelner told WSJ, referring to Sirius XM management. "They can't use bankruptcy at creditors's risk as a 'Hail Mary' pass to keep themselves in power."

The creditor group that Edward Weisfelner represents holds about $173 million in Sirius debt - the same group that agreed on Friday to extend the maturity of the bonds until 2011.

Just the fact that some of Sirius XM Radio's creditors are already contemplating an ouster underscores Karmazin's dwindling support. The decisions made in the next 24-hours will essentially determine both the company's fate, as well as management's.

if no confirmation today, then we can forward to early trading. here is the trading times as i understand them.

THERE is trading called "in the pit". it starts at 7:00 a.m. and goes to 8:00 a.m. u have to have a seat on the exchange or something else. it is very thinly traded. we will know then. if not then, pre market trading from 8:00 to 9:30 a.m. anyone can trade there but u have to place a "limit order". regular trading from 9:30 a.m. to 4:00 pm. then post market trading from 4 PM to 6:30 pm and again u have to enter a "limit order", then this pit trading again from 6:30 pm to 8PM. it was in the pit trading on friday nite that the NY Post published there article and the stock from .10 or to .129

the suspense is driving me crazy.

fox could report
that the sun is supposed to rise tomorrow morning,
and i'd be inclined to disbelief

come guys get the women in your wife to wear a wet tea shirt with the saying across their chest "give me Libery of give me death (BK)"