Sirius Satellite Radio Inc. said it may be forced to file for Bankruptcy Court protection if the company, which offers more than 100 radio channels that can be heard across the U.S., can’t complete a refinancing by June.( Los Angeles Times – need to register for free to read), Sirius is the sponsor for the #7 Dodge that Jimmy Spencer will drive in 2003, no word on how this effects that sponsorship, esp since it may not happen until June. KMart and Conseco left the sport after declaring bankruptcy.(1-14-2003) UPDATE: Sirius Satellite Radio Inc. said on Wednesday that the U.S. Federal Communications Commission has approved its application to transfer control of its radio licenses to its creditors, giving the broadcaster the go-ahead to restructure its debts. The satellite radio company, which suffered a severe funding crush after struggled with costly delays on the launch of its service, is in the process of a restructuring needed to extend its funding beyond the middle of this year. Sirius, which plans to swap almost $700 million in debt and all of its $525 million preferred stock for common stock, said it hopes to complete the restructuring this quarter. The swap would remove the company’s debts and provide it with funding until the middle of next year, Sirius said.( Yahoo Biz ) AND Shares of Sirius Satellite Radio Inc., which said Monday it may file for bankruptcy if its proposed restructuring isn’t completed by June, rose 73 percent since trading began yesterday, after a Salomon Smith Barney analyst changed his rating on the stock from “in-line” to “outperform.” None of the other eight analysts covering the company recommends buying the shares, according to Bloomberg analytics. The company will be in a stronger position if it completes its refinancing, because all debt will be eliminated, and i will have enough money “to operate close to break-even.” Sirius has lost more than $800 million since it was founded in 1990. In October, Sirius proposed a restructuring plan to avert bankruptcy that would leave current shareholders with 8 percent ownership, giving 92 percent to lenders, preferred stockholders and new investors. On Monday, Sirius said again in a filing with the Securities and Exchange Commission that it faces possible bankruptcy if its shareholders and lenders don’t agree to the company’s refinancing plan.( Detroit News )(1-16-2003)
