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FRIDAY, NOVEMBER 27, 2009
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Sirius Creditors Ready to Go After CEO

If company files for bankruptcy, they could ask judge to remove him

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(Newser) – Sirius XM Radio's creditors want the company to make a deal with an investor rather than file for bankruptcy, and they're prepared to go after CEO Mel Karmazin's job if things don't go their way, the Wall Street Journal reports. "The board of directors should carefully consider the ramifications" of bankruptcy, a lawyer for the creditor group said. The company's decision is expected today.

The creditors think Karmazin should have refinanced the company's debt—now totaling about $3.25 billion—in July, when Sirius and XM merged. About $175 million of that is due tomorrow. Sirius does have options: Two investors have offered to dump cash into the company in exchange for a stake. "They can't use bankruptcy at creditors' risk as a Hail Mary pass to keep themselves in power," the lawyer said.

Jamie Foxx hosts his Sirius XM radio show The Foxxhole on Dec. 19, 2008.
Jamie Foxx hosts his Sirius XM radio show The Foxxhole on Dec. 19, 2008.   (AP Photo/SiriusXM, John Harrington)
Oprah Winfrey, right, listens to Gayle King on the
Oprah Winfrey, right, listens to Gayle King on the "Gayle King Show," live on Sirius XM's "Oprah & Friends" show on Jan. 21, 2009.   (AP Photo/Sirius XM, John Harrington)
Howard Stern's radio talk show plays on a Sirius satellite radio.
Howard Stern's radio talk show plays on a Sirius satellite radio.   (AP Photo/Amy Sancetta, File)
Sirius XM Radio CEO Mel Karmazin in New York in March 2008.
Sirius XM Radio CEO Mel Karmazin in New York in March 2008.   (AP Photo/Evan Agostini)
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Creditors will act quickly and definitively if they perceive that management is acting in their own interest and not in the best interest of the estate. - Edward Weisfelner, partner with
Brown Rudnick LLP

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Shannonals
Feb 17, 09 2:27 PM CST
Expecting people to pay for radiobroadcast was an idiotic concept anyway Reply
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