Sirius XM Radio Bankruptcy?

[Garrett Wollman]

<<On Wed, 11 Feb 2009 10:03:34 -0500, "Brian Vita" <brian_vita@cssinc.com> said:

> Given the fact that XM Weather is now used by all of the major airlines as
> well as general aviation, will the government allow them to tank?  Will the
> government bail them out or will they spin off?  Are we looking at another
> Iridium deal here?

What they're talking about is Chapter 11, which essentially means that
the shareholders and the debt holders (who have some serious
repayments due in a week's time) would get wiped out, and the company
would have the opportunity to reject and renegotiate its
overly-generous contracts with content providers like MLB, NFL, and
Stern, and its profit-sharing deals with the automakers.  They would
be able to continue operating, although given that bankruptcy is
poison to a consumer brand like theirs I'm not sure that it wouldn't
have a significant impact on renewal costs.  (But if they work out a
"packaged" bankruptcy, they can be effectively in and out of
bankruptcy in a legal instant.)

Some commentators are suggesting that they would be better to sell one
of the two satellite platforms to someone else.  That's apparently
what EchoStar was looking for.

-GAWollman