The news that Sirius XM (SIRI) restructured some debt got the market excited: Sirius shares jumped 60% after the company announced that it’s reworked some notes that were due this December.
But shares have drooped back down after investors realised that this doesn’t do anything to solve Sirius XM’s immediate liquidity crisis.
The exchange of 10% Convertible Senior Notes due 2009 for new Senior Secured Notes is part of a larger restructuring effort. The Company is in discussions with others with respect to transactions that could refinance some of its and its subsidiaries’ indebtedness. These transactions may not be successfully consummated. If these transactions are not consummated, it may be forced to file for bankruptcy protection as early as February 17, 2009.
Translation: Today’s restructuring might help us down the road. But the gun is still to our head. If we don’t raise $175 million this weekend, we might file for bankruptcy on Tuesday.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.