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Sirius XM Prepping for Bankruptcy: Report

Sirius XM could file for bankruptcy protection as it stares down a deadline for maturing debt, according to a published report.

Sirius XM

(SIRI) - Get Sirius XM Holdings, Inc. Report

may file for Chapter 11 bankruptcy protection "within days," according to a published report late Tuesday, as the satellite radio company continues to grapple with outstanding debt.

According to a report in

The New York Times

, Sirius XM has been working with the restructuring expert Joseph Bondi of Alvarez & Marsal and the bankruptcy lawyer Mark Thompson of Simpson Thatcher & Bartlett to help prepare a Chapter 11 filing. The report cited people close to the company, who said documents and analysis are close to being completed and a filing could come within days.

After gaining 3.6% during Tuesday's down session, shares of Sirius XM were lower by 2% after hours to 11 cents a share.



report comes one week before a chunk of Sirius XM's maturing debt will come due. Sirius XM reduced its total debt due on Feb. 17 to about $175 million, but the future is a bit unclear. The company still has approximately $3.4 billion in debt, with just under $1 billion due before the end of the year, and its stock has fallen sharply since the July merger between Sirius Satellite Radio and XM Satellite Radio.


reports surfaced last Thursday

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has acquired a significant portion of Sirius XM's debt and could seize control of the company's attractive assets.

EchoStar, which sells set-top boxes and was the former parent of

Dish Network

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, has acquired part of a $300 million tranche of Sirius XM debt set to mature next week, according to

The Wall Street Journal

, which cited "people familiar with the matter."



went on to say that Charles Ergen's EchoStar could also be buying Sirius XM's senior bank debt, which comes due in May.