Why it's important knowing if they can come up with the $175 million....Originally Posted by sxminvestor
I just got off of the phone with Libor and we both agree that It is very important because Mel's back wouldn't be up against the wall in these negotiations and it could buy more time. The most important thing is avoiding BK and the shareholders surviving to fight another day...
tick tock tick tock tick tock tick tock
http://www.bloomberg.com/apps/news?p...4sg&refer=home
Sirius XM Creditors Would Seek to Oust Karmazin in Bankruptcy
By James Callan
Feb. 16 (Bloomberg) -- A group of Sirius XM Radio Inc. creditors will seek the removal of Chief Executive Officer Mel Karmazin if the company files for bankruptcy instead of making a deal to remain solvent.
“Creditors believe that a precipitous bankruptcy filing will not be in their best interests,” said Edward Weisfelner, a lawyer with Brown Rudnick LLP who’s representing the creditors. “Our group is concerned that management not use the threat of bankruptcy as a negotiating tool,” he said in a telephone interview today.
Sirius XM said last week it may be forced to file for bankruptcy as soon as Feb. 17 if it can’t reach an agreement to refinance debt. Tomorrow, the New York-based company must repay $175 million in bonds held by Charles Ergen’s EchoStar Corp. Karmazin is also in talks with John Malone’s Liberty Media Corp. about a possible transaction, people with knowledge of the matter said. A deal with Ergen or Malone could prevent a bankruptcy.
“The management of Sirius XM is continually working to ensure the best possible outcome for the enterprise,” Sirius XM said today in an e-mailed statement.
If Sirius XM files for bankruptcy, the creditors will seek the appointment of a trustee or an overseer to replace Karmazin and senior management, Weisfelner said.
The company exchanged about $172.5 million of its convertible bonds due December 2009 for senior notes maturing in June 2011, it said in a statement last week. The amount is almost half of the $400 million in notes Sirius XM had maturing at yearend.
The New York Post reported last week that Malone had offered Sirius XM a bridge loan of several hundred million dollars to pay debt maturing next week, citing a person close to the situation.
The shares rose 3 cents to 10 cents on Feb. 13 in Nasdaq Stock Market trading. The stock has plunged 94 percent since Karmazin, 65, completed the merger of Sirius and XM in July. Sirius XM has about $3.25 billion in total debt.
The Wall Street Journal reported on the creditors’ plan earlier today.
To contact the reporter on this story: James Callan in New York at jcallan2@bloomberg.net.
I hope Sirius doesn't turn me into an alcoholic....
New to the site. I love the insights, thank you all.
Perhaps I'm just being naive but with the recent S&P upgrade and multiple firms drastically increasing their holdings in SIRI, do we still need to worry about BK?
Hello All!
I am new to Sirius and have only been trading for about 6 months now. So in the interest of starting with some bargains, I ended up buying some shares of Sirius at that time. Since then, I have been following this forum and watching all of the great work some of you do on a regular basis. This last week has been exciting and nerve racking to say the least. Just like most of you, I am anxious to find out how this will all work out.
One thing I would like to mention though. With all of these large corporations and funds investing pretty heavily over the last week or so, wouldnt you think that this would have some influence on the decisions that Mel and the others are facing? Not simply because of the investments made but because of the opportunity to do right by these companies and regain the trust of the majority of Wall street. I know that they have to do what they have to do, but if they were to simply disregard these investors and delcare bankruptcy, wouldnt that negate a lot of the momentum they have in gaining some of this trust in the market? I mean if they were to allow these large corporations' investments to go by the way side, then dont you think it would be almost impossible to expect them to invest in this company again in the future after they "work it out" through bankruptcy?
Anyways, just wanted to give a few comments to contribute. Interested in everyone's thoughts on this.
Thanks again for all the hard work and research guys! I have learned a lot over the last few weekes and look forward to learning a lot more this week.
We are rounding the final turn Mel! Start whipping that horse and get it done!
Welcome to the board NewtoSirius,
Again, excuse me while I go puke blood!!! Ahahahaha I just want to know!!!
I agree and hope he takes it and finds a way to get through May and give the shareholders a shot here.
I just feel deflated and can't take anymore disappointment. My nerves are shattered, don't want to hope anymore. I go from being upset I didn't load up on even more shares under .10 friday because of the after hours little pop on 175M offer, to being really depressed I'm going to possible hear they will file and lose the balance of my $.
It's going to be hard to sleep if no news today.
http://www.fmqb.com/article.asp?id=1167295
Report: Sirius XM Creditors Threaten Karmazin Removal
February 16, 2009
More rumors continue to swirl around the financial fate of Sirius XM Radio, as a group of the satcasters creditors told The Wall Street Journal over the weekend that they would consider removing Mel Karmazin from his post as CEO if the company files for bankruptcy.
"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," said Edward Weisfelner of Brown Rudnick LLP, the law firm representing the creditors. "The board of directors should carefully consider the ramifications."
A decision on the future of Sirius XM could be announced as soon as today. The company confirmed late last week that it is considering its options, including a potential bankruptcy filing that could happen as soon as tomorrow (February 17). "These transactions (meaning its debt payments) may not be successfully consummated," the satcaster said in a statement.
The Financial Times reports also that Sirius XM might not make a final decision on its offer from Liberty Media until either late today or tomorrow, The offer would find the DirecTV owner repaying $175 million in bonds and also prevent Liberty rivals EchoStar and Charles Ergen from getting involved with Sirius XM.
Developing...
What is your guys take on what Mel had said in this interview with Jim Cramer pre merger!
"I guarantee you that Dish and Direct TV would have liked to have the merger done." Mel
"I think that these companies today are going to capture the values and you are going to see the stock improve" Mel
"The thought of a default is ridiculous." Mel
http://video.aol.com/video-detail/ma...ger/1742551553
Reply With Quote