mlongj

Sirius Plays Dangerous Game at Investors' Expense

Mel is gonna swoop in at the last minute and find a way to save the day. There is still time for a compromise which would be mutually beneficial to both companies. It could make Mel look like the hero. And certainly there is as much evidence to support this assertion as there is to reason that Sirius will file bankruptcy. The headline on Yahoo's homepage had Sirius on the front with a scare on the subscribers. So, it is generating attention in the minds of some who have these same subscriptions. It is media manipulation, and who is controlling this is the one who can win the battle. Mel knows media and has a few connections. So we will have to wait a little while longer.

Long SiriusXM

Sirius Plays Dangerous Game at Investors' Expense

Relmor is right. Gotta stay with it at this point. The stock will still trade in pink sheets and will go up from here. Although most of the investment may be gone, there will be an opportunity to salvage something when it goes above a dime or maybe .15. This would be the last chance, not right now. Then again, they still have to make the declaration. This is still the one things that is missing from the equation, the filing. Up to this point, it is still a bunch of speculation.

Look at Pilgrims Pride. It still trades at about .90 in bankrutpcy. So all is not entirely lost. PGPDQ.PK Check it out. They were almost closed down right before Thanksgiving, but were given a reprieve and have come back form .20. It is best to wait and see at this point, even for the longs.

Long SiriusXM

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

mogami_99 and relmor

Both of you have excellent points. I remember what you said about rumors, Relmor, and I listened. As for the people that actually know something, they are yet to be seen. Just when you think the drama can't reach another level with SiriusXM, here comes the NYTimes. LOL. This is crazy, isn't it?

LongSiriusXM

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

Killerhaul thanks for the inspiration in this hour of gloom. You always find a postiive and we all need one now. So thanks for your spirit. It is refreshing to say the least.

Long SiriusXM

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

If Cos1000, sl62, relmor, killerhaul, and company are saying don't jump, then don't jump. There seems to be consensus among the more knowledgable ones that it could be smoke and mirrors. I will stay on while this unfolds. As sl62 stated, there will be an opportunity to get some money back when the shorts begin to cover. Not much left to do at this point. Wow! what a ride!

Long SiriusXM

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

Til the bitter end Killerhaul. .073 and holding.

Long SiriusXM

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

SL62 Hope your hunch is right. A counter move would be logical at this point in the game. The NYT article suggests that Charlie could get left holding the bag if he does not make an offer on Sirius. So it could very well be a game of "extreme" hard ball between Mel and Charlie. We will know shortly according to the Times.

Long SiriusXM

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

This could very well end up being a case of "extreme" hard ball being played between Mel and Charlie.

Long SiriusXM

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

The article that Killerhaul mentions is as follows:

Sirius XM Prepares Bankruptcy Filing
By ZACHERY KOUWE
Published: February 10, 2009
Sirius XM Satellite Radio has been working with advisers to prepare for a possible bankruptcy filing in a move that could put pressure on the satellite company EchoStar, which owns a substantial amount of the company’s debt.

Sirius has been working with the restructuring expert Joseph A. Bondi of Alvarez & Marsal and the bankruptcy lawyer Mark Thompson of Simpson, Thatcher & Bartlett to help prepare a Chapter 11 filing, people close to the company said. The documents and analysis are close to being completed and a filing could come within days, according to a person familiar with the matter.

Sirius, whose radio stars include the popular shock jock Howard Stern, has also been working with the investment bank Evercore Partners. Charles Ergen, who controls a satellite-television empire including the Dish Network Corporation and EchoStar, recently acquired the majority of a $300 million tranche of Sirius debt that matures next Tuesday.

Since the news about the debt purchase has emerged, questions have surfaced over whether Mr. Ergen will make a bid to purchase Sirius. The threat of a possible bankruptcy filing could force Mr. Ergen to make a formal offer for the company now if he doesn’t want to go through an auction in bankruptcy court.

It could also compel Mr. Ergen to agree to convert his debt into an ownership stake in Sirius at a higher price than he originally considered.

With more than $5 billion in assets, Sirius would be second-largest company to file for Chapter 11 bankruptcy protection so far this year, according to the research firm Capital IQ’s database. Smurfit-Stone, which had more than $7 billion in assets when it filed in late January, was the biggest so far.

Long SiriusXM

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

There is only one word that comes to mind at this point and that word is unbelievable. If they do declare bankruptcy, I will be the first to admit that I was wrong, big time. It just doesn't make any sense. Perhaps the key word in the article is "may file". I don't know. Nevertheless, I will go down with the rest of you in this mess. Hope it is just another rumor. If not, oh well. If you cant take the loss, don't play.

Long SiriusXM

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

Sirius XM (SIRI Quote - Cramer on SIRI - Stock Picks) may file for Chapter 11 bankruptcy protection "within days," according to a published report late Tuesday, as the satellite radio company continues to grapple with outstanding debt.

More on SIRI Satellite Broadcast Winners & Losers: EchoStarWhat EchoStar Might See in Sirius XMEchoStar May Plan Sirius Takeover: ReportConsumers, Investors Tune In to DirecTVWhy Isn't Sirius XM on the iPhone?Keep an Eye on the Short RatioSlingCatcher: Streaming the Web on TVSirius Ending 2008 With 22% Less StaffFive Dumbest Things on Wall Street: Dec. 12Today's Outrage: FCC's Communication Breakdown Market Activity DISH Network Corporation Shs -A| DISH DOWNEchoStar Corporation Shares - A -| SATS DOWNSirius XM Radio Incorporated| SIRI UPAccording to a report in The New York Times, Sirius XM has been working with the restructuring expert Joseph Bondi of Alvarez & Marsal and the bankruptcy lawyer Mark Thompson of Simpson Thatcher & Bartlett to help prepare a Chapter 11 filing. The report cited people close to the company, who said documents and analysis are close to being completed and a filing could come within days.
After gaining 3.6% during Tuesday's down session, shares of Sirius XM were lower by 2% after hours to 11 cents a share.

The Times report comes one week before a chunk of Sirius XM's maturing debt will come due. Sirius XM reduced its total debt due on Feb. 17 to about $175 million, but the future is a bit unclear. The company still has approximately $3.4 billion in debt, with just under $1 billion due before the end of the year, and its stock has fallen sharply since the July merger between Sirius Satellite Radio and XM Satellite Radio.

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

Common shareholders get wiped out with a bankruptcy filing, or am I mistaken?

Long SiriusXM

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

The Street is reporting a Chapter 11 filing within days. Sounds interesting???

Any thoughts on this one?

Long SiriusXM

Echostar Buys Sirius Debt: Takeover Thoughts or Just a Good Investment?

Sirius would be a good investment for the likes of EchoStar as the product is very similar. It would probably not be the best investment for a bank or other entity that might want to snatch up struggling companies on the cheap. EchoStar has the long term vision that could put SiriusXM in a very enviable position which is just as likely a scenario as all the negative possibilities reported in the press. Never a dull moment with this one. Soon all will be known by all; and won't that make for an interesting disuccion board.

Long SiriusXM

Echostar Buys Sirius Debt: Takeover Thoughts or Just a Good Investment?

This only looks like a positive for Sirius or as Brandon puts it "A good investment" for Ergan. Echostar, Apple, Audiovox....the list is growing of those potential entities that would risk entering into committments with a bankrupt company. Kinda funny in a way isn't it? The news just keeps getting better and better. The problem is that most have not had any such news in so long it is difficult to believe it is actually "good" news. But, it is good. Keep the faith.

Long SiriusXM