Maybe NOT 1 year free XM...

[BacktoHyundaibychoice]

Don't know how this will play out, but I sure hope they last through the baseball season...

NEW YORK (Reuters) - Shares of Sirius XM Radio Inc (NasdaqGS:SIRI - News) fell 28 percent on a report about the satellite radio provider's ability to meet its looming debt payments and the possibility that it might seek bankruptcy protection.

The shares, which had languished in recent weeks around 11 cents a share, fell to 8 cents on Wednesday, after the New York Times reported that Sirius has been working with advisers on a possible Chapter 11 filing.

Bankruptcy could put pressure on Charles Ergen's EchoStar Corp (NasdaqGS:SATS - News), which reportedly owns a substantial amount of Sirius XM debt.

Sirius has $175 million of convertible notes maturing on February 17, $350 million of secured bank debt due in May 2009, and $433 million in convertible notes due December.

Analysts said that while Sirius Chief Executive Mel Karmazin had boasted that the company would meet its debt obligations, the tight credit market may have made that task more difficult as the payment date draws near.

"Sirius's options have dwindled," said Stanford Group analyst Frederick Moran. "This first refinancing hurdle, while only a small percentage of the company's debt, comes at a very difficult time relative to the credit market."

 

[GS300rich]

I was listening to Howard stern this morning and this is a very real concern. He stated there was an investor that has been trying to buy for a while and who would be willing to assume the debt, I hope they don't go under and I dont mind if they raise the monthly fee a little

 

[ultra63]

Howard's outrageous contract does not help their financial picture. The share price decline is amazing for this company. The "lifetime" subs they are selling may not be such a good deal.

 

[zedbyers]

one way or another the company will survive. they may go bankrupt and then someone will get them for a bargin. those of us with 'free' packages in our cars may or may not get screwed here. it depends on how all that is negotiated between XM and the Hyundai.

 

[Mark_888]

Chapter 11 is reorganization under bankruptcy laws, not going out of business. Chapter 7 is liquidation (out of business).

I am sure Howard Stern is concerned because I heard he signed a contract for $150 million to join Sirius (probably payable over a long period of time), which could be in jeopardy in chapter 11 (he would be a creditor).

 

[Richard Ft. Lauderdale]

When Howard Stern first signed with Sirius he received several million shares as part of his contract. He immediately sold those shares for something in the neighborhood of
$6. He knew he was paid too much and the company was in trouble.

 

[GS300rich]

yes howard was paid a lot of $ but he got a ton of people subscribed. Plus the revenue from the commercials I am sure he is probably the only reason they are still around.

 

[BacktoHyundaibychoice]

Read today that talks are in progress with the owner/s of DirecTV. Maybe Ch. 11 can be avoided. Either way, I suspect CH.7 won't happen and we'll be fine.

 

[3587]

Howard is still one of the very reasons I have satellite radio!

 

[slowboyy]

i dont the situation but i dont like it i had some good music channels on my directv and now i dont what the hell is it now

______________________________

Help support this site so it can continue supporting you!

 

[Mark_888]

I tried out my iPod recently and the sound quality is excellent (my iPod files are 256 bps AAC variable ripped from my CD's). I doubt that I will use XM at all during the remaining period of my trial, with the possible exception of an occasional traffic report.

 

[DanTheMan]

When Howard Stern first signed with Sirius he received several million shares as part of his contract. He immediately sold those shares for something in the neighborhood of
$6. He knew he was paid too much and the company was in trouble.

Based on what I saw the value of each share was, $6 was probably the TOTAL of what he got when he sold, if he would have sold under today's conditions!

Dan :>)

 

[bilmat]

Here's updated info on the XM/Sirius situation as of Feb. 12th...

<http://www.slate.com/id/2211158>

 

[jabrown6940]

I had XM in an Acura TL. Paid for two years. Traded the car in a year and a half later. I didn't bother to cancel the service. At the time of renewal it took me two months of e-mails and phone calls to get them to stop the service and then they wanted me to pay for those two months. I would never again subscribe to XM (or AOL) for this type of treatment.

 

[Mark_888]

I had XM in an Acura TL. Paid for two years. Traded the car in a year and a half later. I didn't bother to cancel the service. At the time of renewal it took me two months of e-mails and phone calls to get them to stop the service and then they wanted me to pay for those two months. I would never again subscribe to XM (or AOL) for this type of treatment.

I had the same experience with a Sprint mobile phone. I will never use them again. I tried to cancel several months after my 2 year contract was up (I already had a new phone with a different service provider), but it took me about 3 more months and serious threats before they would finally cancel. Of course you can't cancel on-line, and when you select the cancel option on the phone they transfer you to the "retention" department (after you wait about 20 minutes on hold).

 

[Blackout]

Chapter 11 is reorganization under bankruptcy laws, not going out of business. Chapter 7 is liquidation (out of business).

I am sure Howard Stern is concerned because I heard he signed a contract for $150 million to join Sirius (probably payable over a long period of time), which could be in jeopardy in chapter 11 (he would be a creditor).

I'm sure Sirius wishes Howard's contract was for only $150 million. Try more like $500 million. http://abcnews.go.com/GMA/Technology/story?id=1369015 and on top of which he was given an $83 million bonus back in 2007 http://www.msnbc.msn.com/id/16539806/ I'm a huge Howard fan but I'm starting to get annoyed with them. With being paid that much you should be on the air every damn day. It seems like every other week they are on vacation for a week

 

[GS300rich]

that was part of their contract, like it or not. I like hearing the old tapes sometimes but not for a whole week. They need to have bubba fill in for him while he's on vacation