Sirius buys 2 years on Dec 2009 debt

Jgatie

Banned
Oct 14, 2008
1,402
49
48
Can one of the financial weenies please translate that article into english for this decidedly non-financial speaking computer science weenie?
 

TSS Taylor

DRC Fan
Oct 9, 2008
3,501
200
63
Chicago, IL
www.tss-radio.com
Can one of the financial weenies please translate that article into english for this decidedly non-financial speaking computer science weenie?

I'm no expert but it looks like they are making progress on re-negotiating some of the other notes due LATER this year which most likely means they will be able to take care of the note due Tuesday. This makes it look like they have a pretty good hand of cards they have been hiding is my guess.
 

IdRatherBeSkiing

Sherbert is NOT and NEVER WILL BE ice cream.
Oct 11, 2008
19,289
6,817
168
Toronto, ON
I'm no expert but it looks like they are making progress on re-negotiating some of the other notes due LATER this year which most likely means they will be able to take care of the note due Tuesday. This makes it look like they have a pretty good hand of cards they have been hiding is my guess.

It could also mean that EchoStar held none of this debt. I believe EchoStar has only bought debt due 02/17 and in May 2009.

As to the financial speak .... they extened the notes due date and will pay some interest over thee next 2 years for that extension.
 

sportboy

Member
Dec 18, 2008
96
1
8
Fox business news just reported unless a white knight comes to the rescue over the weekend, Sirius is expected to file bankruptcy on Tuesday.
 

sportboy

Member
Dec 18, 2008
96
1
8
SIRI Sirius XM Radio announces exchange of $172.5 mln of existing Convertible Senior Notes; If these transactions are not consummated, it may be forced to file for bankruptcy protection as early as February 17, 2009 (0.09 +0.02) -Update-

Co announces that XM Satellite Radio Holdings, its wholly-owned subsidiary, had exchanged ~$172.5 mln aggregate principal amount of its outstanding 10% Convertible Senior Notes due December 2009 for a like principal amount of its newly issued Senior Secured Notes due 2011. An aggregate of $400 mln in principal amount of the 10% Convertible Senior Notes due December 2009 was outstanding prior to this transaction. The purchasers of the new Senior Secured Notes will be paid an aggregate structuring fee of $9.45 mln, $5.07 mln of which was paid in cash and $4.38 mln of which was paid in the form of shares of the co's common stock based on the closing sales price of the common stock on February 12, 2009, which was $0.074 per share. The exchange of 10% Convertible Senior Notes due 2009 for new Senior Secured Notes is part of a larger restructuring effort. The Company is in discussions with others with respect to transactions that could refinance some of its and its subsidiaries' indebtedness. These transactions may not be successfully consummated. If these transactions are not consummated, it may be forced to file for bankruptcy protection as early as February 17, 2009.
 

Jleimer

Active Member
Oct 30, 2008
1,226
13
38
Sparks,NV
Basically from what I read from this is that this is pretty much a cat and mouse game between Mel and whoever is trying to buy the company. This is getting pretty interesting to say the least , and this weekend will be a long one to say the least in waiting for D Day.
 

JJS

Member
Oct 13, 2008
90
7
8
Could it be that the Dec. 09 creditors just provided some additional financing that will enable Mel to pay off Charlie's notes on Tuesday and tell him to take a hike? Mel's out for a friendly rescuer who will retain him as CEO, whereas Charlie seems to have other plans.
 

IdRatherBeSkiing

Sherbert is NOT and NEVER WILL BE ice cream.
Oct 11, 2008
19,289
6,817
168
Toronto, ON
Could it be that the Dec. 09 creditors just provided some additional financing that will enable Mel to pay off Charlie's notes on Tuesday and tell him to take a hike? Mel's out for a friendly rescuer who will retain him as CEO, whereas Charlie seems to have other plans.


If they actually had money set aside for that debt ... yes. But since they are exchanging debt for debt they have no additional cash.
 

MNXMFan

Member
Oct 24, 2008
95
3
8
This is a debt extension, plain and simple. The only way Liberty and Echostar will invest money in the company is if this debt is re-negotiated, along with the 400M due in May.

If not, Bankruptcy will happen as early as Tuesday. Liberty is presenting their plan to the board today, and if they walk, then Echostar gets control of the company. If they both walk, then Sirius will be filing Bankruptcy. The press release is just trying to put positive spin on a dire situation, perhaps in an attempt to convince Liberty to invest or Echostar to come up with better terms for a buyout.

Think of it as a chess game. Sirius is in Check right now, and if they make the wrong move, check mate happens Tuesday.
 

MNXMFan

Member
Oct 24, 2008
95
3
8
Could it be that the Dec. 09 creditors just provided some additional financing that will enable Mel to pay off Charlie's notes on Tuesday and tell him to take a hike? Mel's out for a friendly rescuer who will retain him as CEO, whereas Charlie seems to have other plans.

Sirius XM can't borrow any more money, or certain notes (formerly including that 200M) became due immediately. Thats why Liberty is requiring those debts to be renegotiated.
 

IdRatherBeSkiing

Sherbert is NOT and NEVER WILL BE ice cream.
Oct 11, 2008
19,289
6,817
168
Toronto, ON
It is definatly all part of the chess game. Look at today's orbitcast headlines you have EchoStar agreeing to keep Mel on and Liberty presenting to the board. Its a 3 person chess game and at this point it is unclear who's king is actually in check from whom.

I am starting to think (wishfully maybe?) that bankruptcy is probably going to be avoided.

Echostar could make out like bandits even without aquiring Sirius XM. If they paid pennies on the dollar for that debt, the debt will no doubt be repaid as a part of a deal with Liberty, he will have made a tidy profit for 1 weeks work.