via The Washington Post
Sirius XM Radio Avoids Bankruptcy
Tuesday, February 17, 2009; 9:34 AM
Liberty Media has agreed to loan Sirius XM Radio $530 million to help save the satellite radio provider from bankruptcy.
Liberty Media, which owns DirecTV, and Sirius said in a news release that the loan will go to paying $175 million in debt that comes due for Sirius today. The remainder of funds will be used to pay other debts coming due in May and at the end of the year, and for general working capital to run the satellite radio business.
In exchange, Liberty will receive 40 percent of Sirius's common stock and get seats on Sirius's board of directors. Liberty Chairman John Malone and chief executive Greg Maffei are expected to take those seats. Liberty Media, based in Englewood, Colo., owns several television media entities including QVC and Discovery.
"We are excited to be investing in SIRIUS XM. We have been impressed with the company, its operations and management team," Maffei said in a release. "SIRIUS XM's ability to grow subscribers and revenue in a difficult financial and auto market is indicative of how listeners view this as a 'must have' service."
Full article is here.