New reports are claiming that Sirius XM is “within days” of filing for Chapter 11 bankruptcy. According to a New York Times report, the company is currently “working with advisers to prepare for a possible bankruptcy filing.” So, as of now, they are considering the option, which means they have not begun the process, still this is not good news.
On the flip side, the report also mentions that this could also be a calculated move to convince Charles Ergen (owner of Dish Network and EchoStar) to make a solid offer to purchase. Ergen has already made an offer in the past, it came shortly after Sirius and XM merged.
Should Sirius XM go through with the Chapter 11 filing, customers are unlikely to see any interruption in the service. However some of the higher paid acts such as Howard Stern could go away when contracts up for renegotiation.
Of course, all things considered, I cannot say that this news comes with much surprise, if anything the surprise is why it has taken this long. I have been contemplating canceling my subscription lately, I guess it is safe to say that I am not alone in that thought.
Read [New York Times]
No matter what we do bankruptcy should not be overlooked and must be prevented.