Sirius XM facing bankruptcy [Archive] - Page 2 - Commanders Post at The Warpath

htownskinfan

02-13-2009, 08:08 AM

havent these companies been in huge debt from the start? doesnt seem like to me they could ever get out of that huge debt,wouldnt it take years and yrs to pay off their current debt with the current subscriber base? I just called to cancel mine and at first they offered me a reduced price,I said throw in the howard package,they said no,I said cancel it then,they said ok you can have it free for another 3 months and see if u change your mind,I said ok

BDBohnzie

02-13-2009, 10:29 AM

XM's debt is what's dragging them down. After the FCC fines were levied right before the merger, it was only a matter of time before Chapter 11 was filed.

Read this the other day:
Sirius XM Bankruptcy May Be Good For Shareholders - SiriusBuzz (http://siriusbuzz.com/sirius-xm-bankruptcy-may-be-good-for-shareholders.php)
“What if,” we asked ourselves, Sirius XM now has the technology to broadcast both services over the Sirius network alone. This patent, issued in April 2008 demonstrates that the company has the technology to broadcast dual services. Although the patent addresses commercial vs. non-commercial, the technology could easily be adapted to broadcast separate services over different bandwidths, a technology similar to HD radio technology. This could explain Sirius XM’s recent channel consolidations as well.

All of this means of course, that if in fact Sirius XM can now provide both services over the Sirius network alone, that the XM Satellites and repeater network are now a disposable asset. As most of the companies 2009 debt obligations are backed by these same XM assets, the company would be wise to use these as a means of ridding itself on the huge debt burden placed on it since the merger with XM. By simply putting XM holdings into chapter 11, Sirius will in fact eliminate 2/3 of its outstanding debt. It would accomplish this, and save its investors as well. Sirius XM currently has about $3.2 billion dollars in debt. Out of that debt, Sirius owns about $1.1 billion and XM owns the other $2.1 billion. The only debt that Sirius has due this year is the $174 million payment coming due next week. The rest of the $783 million is all XM’s.
So in essence, if SiriusXM can broadcast both sets of channels over Sirius' satellites, they can sell off XM's assets and that would help them right the ship so to speak.


	Commanders Post at The Warpath > Off-Topic Discussion > Parking Lot > Sirius XM facing bankruptcy Log in Sirius XM facing bankruptcy Pages : 1 [2] FRPLG 02-11-2009, 12:01 PM Hmmmm. Sounds like me. Anyone got an injection of capital they can spare? Obama is on his way baby! htownskinfan 02-13-2009, 08:08 AM havent these companies been in huge debt from the start? doesnt seem like to me they could ever get out of that huge debt,wouldnt it take years and yrs to pay off their current debt with the current subscriber base? I just called to cancel mine and at first they offered me a reduced price,I said throw in the howard package,they said no,I said cancel it then,they said ok you can have it free for another 3 months and see if u change your mind,I said ok MTK 02-13-2009, 08:11 AM Like any startup of course they have a lot of debt. The nose dive that the car industry took really hurt them too. BDBohnzie 02-13-2009, 10:29 AM XM's debt is what's dragging them down. After the FCC fines were levied right before the merger, it was only a matter of time before Chapter 11 was filed. Read this the other day: Sirius XM Bankruptcy May Be Good For Shareholders - SiriusBuzz (http://siriusbuzz.com/sirius-xm-bankruptcy-may-be-good-for-shareholders.php) “What if,” we asked ourselves, Sirius XM now has the technology to broadcast both services over the Sirius network alone. This patent, issued in April 2008 demonstrates that the company has the technology to broadcast dual services. Although the patent addresses commercial vs. non-commercial, the technology could easily be adapted to broadcast separate services over different bandwidths, a technology similar to HD radio technology. This could explain Sirius XM’s recent channel consolidations as well. All of this means of course, that if in fact Sirius XM can now provide both services over the Sirius network alone, that the XM Satellites and repeater network are now a disposable asset. As most of the companies 2009 debt obligations are backed by these same XM assets, the company would be wise to use these as a means of ridding itself on the huge debt burden placed on it since the merger with XM. By simply putting XM holdings into chapter 11, Sirius will in fact eliminate 2/3 of its outstanding debt. It would accomplish this, and save its investors as well. Sirius XM currently has about $3.2 billion dollars in debt. Out of that debt, Sirius owns about $1.1 billion and XM owns the other $2.1 billion. The only debt that Sirius has due this year is the $174 million payment coming due next week. The rest of the $783 million is all XM’s. So in essence, if SiriusXM can broadcast both sets of channels over Sirius' satellites, they can sell off XM's assets and that would help them right the ship so to speak. CRedskinsRule 02-17-2009, 10:26 AM Well they pushed it back some :) Liberty Media to invest in Sirius XM Radio (http://news.yahoo.com/s/ap/20090217/ap_on_bi_ge/sirius_liberty)