Click to Skip Ad
Closing in...
  1. AirPods 2 Price
    11:46 Deals

    Amazon’s AirPods 2 price is the lowest it’s been all year, but not for much lo…

  2. Best Robot Vacuum Deals
    13:00 Deals

    Amazon’s best Roomba vacuum deal is the Roomba 675 for $199

  3. Best Camera Drone Under $100
    08:43 Deals

    Best camera drone under $100 gets a rare extra discount at Amazon

  4. Best Car Detailing Products
    14:14 Deals

    The best car detailing product is a $5.59 tool on Amazon that pros don’t want you to…

  5. Top Amazon Deals
    08:06 Deals

    10 top Amazon deals you can only get if you have Prime

Bridge loan could save Sirius XM from Ergen’s grasp

Zach Epstein
February 14th, 2009 at 3:46 PM

This past week we gave you a brief glimpse into the nightmare that Sirius XM’s business has become and since then things have basically been a cluster… err, mess. Sirius did take a big step in restructuring some of its future debts – $172.5 million that was due in December is now due in June 2011, a move that cost the company 60 million shares of stock. Forget the fact that Sirius XM has $227.5 million of December debt remaining, it also still has $175 million that comes due to Dr. Claw Charlie Ergen and EchoStar this Tuesday and another $350 million due in May. For the time being, the only thing standing between Sirius XM and bankruptcy is Ergen’s willingness to take control of the company, a fate Sirius XM seems to adamantly oppose. But wait! What’s that? A hero emerges to save the day? John Malone and his company Liberty Media are rumored to be in negotiations with Sirius XM at this very moment and may gobble up a healthy chunk of the satellite radio provider’s debt in order to stave off bankruptcy filings or worse yet from the looks of things, Ergen. A quick look at Sirius XM’s near-future debt calendar:

  • $175 million due this Tuesday (to EchoStar)
  • $350 million due in May (to JPMorgan Chase and UBS AB, among others)
  • $227.5 million due in December
  • $172.5 million due in June 2011

That’s right folks, a shade under a billion. To make matters slightly worse, the aforementioned shift of $172.5 million that excited investors on Friday is contingent upon Sirius XM paying Ergen on Tuesday. If it doesn’t come up with the dough, no deal. In the end, Tuesday is basically D-Day for the struggling company and either Liberty or a mysterious third-party must swoop in and save the day. In either of those cases however, Sirius XM is merely looking at a band-aid until May when it will have to come up with another $350 million. We hope Mel and the gang have channel 35 programmed as a favorite – they’re going to need it.

[Via SAI]


Zach Epstein

Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.

Popular News