Report: Sirius Creditors Threaten To Oust Karmazin
February 16, 2009 at 5:24 AM (PT)
A group of SIRIUS XM RADIO creditors will seek to remove CEO MEL KARMAZIN if the company chooses a bankruptcy filing over a deal with an investor that would let it stay solvent, says CNBC, citing a WALL STREET JOURNAL report.
"Creditors will act quickly and definitively if they perceive that management is (not) acting ... in the best interest of the estate," the paper quoted EDWARD WEISFELNER, a partner with BROWN RUDNICK -- the law firm representing the creditor group -- as saying.
The satellite radio company said in response that its management is "continually working to ensure the best possible outcome for the enterprise," THE JOURNAL reported on its website on SUNDAY, adding that a final decision on SIRIUS' future is expected on MONDAY.
LIBERTY MEDIA is in talks with SIRIUS to invest but not take it over, a source said on FRIDAY (NET NEWS 2/13), as SIRIUS tries to stave off a bid by ECHOSTAR. The talks with LIBERTY are seen as a last-ditch attempt by KARMAZIN to hold off ECHOSTAR, which holds $175 million in SIRIUS convertible bonds due on FEBRUARY 17th.
SIRIUS said it had refinanced some debt that was due in DECEMBER, but added that it still might have to file for Chapter 11 bankruptcy protection if talks toward refinancing other debt did not yield results by TUESDAY.