John Malone's Liberty Media is offering Sirius XM a bridge loan of several hundred million dollars to help the nearly insolvent satellite-radio company pay off debt that matures Tuesday, The Post has learned.
According to a source close to the situation, the loan is part of a two-step approach that Liberty wants to take as it looks to bail out Sirius XM, which is struggling to make its debt payment and fend off takeover maneuvers from EchoStar CEO Charlie Ergen.
As part of the plan, Liberty would provide Sirius XM CEO Mel Karmazin enough cash to repay $175 million in debt that Ergen currently holds and is due Tuesday.That then would give Liberty three months to come up with a plan to restructure Sirius XM's roughly $600 million in debt that comes due in May and in December.
One scenario could involve Liberty borrowing from Ergen's playbook by buying up Sirius XM debt on the open market. Another involves Liberty making a pitch directly to Sirius XM's bondholders.
According to a source close to the situation, the loan is part of a two-step approach that Liberty wants to take as it looks to bail out Sirius XM, which is struggling to make its debt payment and fend off takeover maneuvers from EchoStar CEO Charlie Ergen.
As part of the plan, Liberty would provide Sirius XM CEO Mel Karmazin enough cash to repay $175 million in debt that Ergen currently holds and is due Tuesday.That then would give Liberty three months to come up with a plan to restructure Sirius XM's roughly $600 million in debt that comes due in May and in December.
One scenario could involve Liberty borrowing from Ergen's playbook by buying up Sirius XM debt on the open market. Another involves Liberty making a pitch directly to Sirius XM's bondholders.