Sirius Satellite Radio Reaffirms Recapitalization Plans

Sirius Satellite Radio felt compelled to dispute a report in Reuter’s referencing a possible bankruptcy. Sirius reaffirms its plans to recapitalize the company through a voluntary debt for equity exchange and investment of new capital by existing stakeholders. Sirius said the Reuter’s report had no new information.
Sirius expects to file a registration statement for an exchange offer with the Securities and Exchange Commission this month. The satcaster said as a routine part of such a filing, Sirius will include a pre-packaged bankruptcy as a fallback position should it fail to convert the required number of bondholders during the recapitalization process.
The company discussed this possibility previously and language to this effect appeared in its filing of the company’s 10Q for the third quarter of 2002. The language will appear in other filings until the recapitalization is consummated, which is expected to be in early 2003.