Sirius creditors become majority owners

[Richard Chonak <rac@gabrielmass.com>]

I know I'm not the only Sirius customer out there, as I've seen
its little roof-mounted antenna on at least one other car in
front of me at the drive-thru.  So far, though, there aren't
all that many of us: 11,821 subscribers after the company's first
quarter of nationwide operations.

Here are a few numbers from their latest 10-Q statement filed
with the SEC that caught my attention.

Subscriber rebates more than offset the (quarterly) subscription
revenue, so total subscriber revenue for July-September was 
$-51,000.

With ad sales and other revenue sources, they had positive
revenue of $17,000.  

However, the company's operating expenses were, uh, $81.7
million. 

So Sirius hasn't quite achieved profitability yet, not that 
anyone was expecting it this soon.   To keep the concern 
going, the company has convinced its creditors to convert their
debt holdings into a 92% ownership stake, leaving 8% of the 
ownership for the poor suckers who owned stock in this
company beforehand.

It's not exactly a bankruptcy; it's a restructuring.  Let's 
hope they make it.

--RC


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