OKMONEY

Does Ergen Have Enough Leverage to Play Out His Sirius Hand?

sl62:

Value your opinion, but, all that is lost in bankruptcy ( a successful Ch 11 reorganization) is debt and the current shareholders. This ain't no chess game or countermove "it's the real thing, baby". This is a loser dies game.


On Feb 10 06:33 PM sl62 wrote:

> Well, it wasn't CHTR last week, but now it is! SP just tok the next
> step down...where you go when the NY Times reports you are talking
> to BK attorneys.
>
> The backside of this whole thing is since Mel and Charlie are rivals,
> would Mel actually do this just to stick it to him? I still just
> can't see it given the risks at losing subs, losing their sports
> contracts, losing way too much. This has got to be a counter move
> and nothing more...

Does Ergen Have Enough Leverage to Play Out His Sirius Hand?

between the hedges:
Been in the bankruptcy business for 32 years. Liquidation or reorganization both result in equity holders being wiped out. SIRI is not a liquidation candidate. Senior debt (bondholders) will become the shareholders in a reorganization.


On Feb 10 05:45 PM between the hedges wrote:

> My understanding is that there is a clear difference between a filing
> for liquidation - where the company closes shop and folds - and a
> reorganization - where debt is reorganized. My understanding is
> that in a reorganization, the shareholders keep their shares and
> the company gets to redo its debt under more favorable terms. I
> think that this is a ploy. Be careful shareholders or you will end
> up selling cheap, similar to the Wachovia Wells Fargo scenario when
> Wachovia went cheap and people panicked out. Hang tight and ride
> it out. Like I say, the share prices are already at bankrupcy levels.

Does Ergen Have Enough Leverage to Play Out His Sirius Hand?

Dayworker:

You hit the proverbial nail on the head. You're analysis is 110% on the money.


On Feb 10 02:24 PM dayworker wrote:

> At this low PS it's either a takeover or BK. I've said that all along.

>
> With the income stream it's a perfect takeover, unless management
> wants
> to keep it for themselves and goes BK. That's why who ever drove
> the
> PS down did it knowing in the future it would be to their advantage.
> It
> wasn't just the shorts trying to turn a profit, there were plans
> in the works
> by different players to get SIRIUS. With $2.7 bil income stream it's
> a gold
> mine. All they have to do is get rid of the shareholders and debt
> by BK
> or low ball buyout and their home free. Their not playing this for
> shareholder interest. They just use stock investors for the capital
> they
> need and jettison them when they can get away with it.