Is Sirius XM seriously toast?

By Paul R. La Monica, CNNMoney
2009-2-11 13:03:00

NEW YORK (CNNMoney.com) -- It's not often that a company with a stock trading for just six cents a share makes headlines. But when that company just happens to be the employer of Howard Stern, you can understand why it's in the news.

Sirius XM (SIRI), the only satellite radio game in town, is in desperate need of a savior. The company's stock has plummeted in the past year due to concerns about how it will pay off its debt load, which is about as big as Stern's ego.

And shares plunged more than 45% Wednesday following several reports late Tuesday that the company may now actually seek bankruptcy protection to escape the clutches of media mogul Charlie Ergen.

Ergen, the chairman of satellite-television provider Dish Network (DISH, Fortune 500) and set-top box maker EchoStar (SATS), owns a sizable chunk of the $300 million tranche of debt that will mature on Feb. 17. He is also said to have made a takeover offer for Sirius XM that Sirius XM has turned down.

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	Is Sirius XM seriously toast? By Paul R. La Monica, CNNMoney 2009-2-11 13:03:00 NEW YORK (CNNMoney.com) -- It's not often that a company with a stock trading for just six cents a share makes headlines. But when that company just happens to be the employer of Howard Stern, you can understand why it's in the news. Sirius XM (SIRI), the only satellite radio game in town, is in desperate need of a savior. The company's stock has plummeted in the past year due to concerns about how it will pay off its debt load, which is about as big as Stern's ego. And shares plunged more than 45% Wednesday following several reports late Tuesday that the company may now actually seek bankruptcy protection to escape the clutches of media mogul Charlie Ergen. Ergen, the chairman of satellite-television provider Dish Network (DISH, Fortune 500) and set-top box maker EchoStar (SATS), owns a sizable chunk of the $300 million tranche of debt that will mature on Feb. 17. He is also said to have made a takeover offer for Sirius XM that Sirius XM has turned down.