dayworker

Echostar's Sirius Power Play

The BK court and Judge will determine who manages the company. With their track record of growing the comapny subs and cost cutting, the Judge
may side with management. Who else is going to be appointed with the
knowldege of the business. I'm sure they have a chance to remain the management.
I know people will be hostile to my scenario. I would just like to know what
the alternative scenario is.
If they don't pay the debt, they don't accept a hostile takeover, what is their move.

Echostar's Sirius Power Play

This has been in cards a long time. In order for Mel to protect Sirius for himself the PS had to be down so that if there were a hostile takeover he could immediately go into BK. It would look strange if PS were at $1.50
or so and they then went into BK.
As i have said many times their goal is to dump the debt thru BK and wipe
out old shareholders. Then when they emerge thru BK restructuring
they can bring in new money with new issues. With the debt gone and
old equity obligations off the books, Sirius becomes a goose with a
golden egg. The value of the assets, including subs. base, a $2.7 income
stream, future subs thru autos, and growth make the total value much
to high for a quick hostile takeover.
In the meantime, they keep the company under their management.
I don't know how many times I've laid out this scenario. Some said
I was off the mark. But as things are going it looks like that is the scenario.
Keep in mind, my whole premise was that they were operating on the greed principle. They saw the $2.7 bil revenue stream. A solid in this
economic environment. All they had to do was get rid of the debt and the
old stockholders. The only 2 options were private equity or BK. Private
equity is out because of the credit crisis. That only leaves BK.
There is no other option because the revenue is not enough to pay debt, there is no credit available, and a hostile takeover means they
lose the company.
I am sorry for all of us. It hurts to be shafted this way, especially because there was potential if the management had planned and run the company better. But their plans did not include the shareholders.
The reason this could be seen was that when the PS dropped the company could have easily bought the shares. But why would they when
they knew they would go BK.
I've said it before, dump the current shareholders and debt, save the company for the current management , and raise capital with new shareholders.
As far as lawsuits, it would take years and years. In the meantime they
rake in the $2.7 bil year after year. They drain the plaintiffs by stalling and stalling on legal issues.
Then when the company equity is returned they could easily cash out
with a bundle.
The writing is on the wall. It' sad for all of us. We got the shaft and we've
all lost a lot of money. I did try to express this before but I was always
put down. So anyhow, I don't see any other scenario. Maybe some of you do.

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

I know it hurts and i'm sorry for everyone. I tried to express to everyone that their game was to get rid of debt and shareholders by BK or a low ball
takeover. When there is $2.7 bil income stream the idea for them is to
figure how to get rid of equity holders and debt and end up with a company
that has a subscriber base. As far as lawsuits go, you are looking at years
and years before anything would be settled. In the meantime they would
bleed the plaintiffs dry stalling and stalling. During those years they would be
raking in the $2.7 bil year after year. Once the equity is rebuilt without
old shareholders and debt they could sell it off for a premium.
They know how to play the game for themselves. I've been saying that
all along. It's bad and they are pretty evil people. I feel bad for all of us who bought in truthfully that we had a winner stock. Except it was a winner for them and not us. We all got taken and a big hit financially.
Sorry for all of us. They got us good.

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

Some didn't agree with my post and called me a silly goose. Well just look at the New York Times article that just came out. I guess then they must be
a silly gaggle.

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

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.