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In response to
"depends what kind of bankruptcy it is. i'm guessing they go for chapter 11 reorganization first -- nm"
by
pigby
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Yeah, I'm sure they'll try to reorganize first
Posted by
Brian (aka trav007)
Feb 10 '09, 18:58
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but IMHO it will fail. Sirius has a tremendous amount of debt, debtor in possession financing has dried up, and their big source of new subscribers--new car sales--has gotten crushed. My guess is Sirius is either liquidated or Echostar takes them over, and at this point I'd wager on liquidation.
And I'll bet one of the first moves in Chapter 11 is an attempt to abrogate the Stern contract. $100M a year is a huge drain on what little cash Sirius still has.
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