Chrysler Bankruptcy, a Potential Threat to SiriusXM
According the paidcontent.org via the thecarconnection.com, the SiriusXM duo counted nearly a million or 16 percent new Chrysler-based listeners in 2008. Obviously, the carmaker's decreasing sales and ensuing brand image problems are likely to put a dent in the satellite radio company's financial figures.
This is not exactly good news for SiriusXM as they recently took an investment from Liberty Media to manage the debts. Moreover, the company has reported subscriber losses in the past two quarters as a result of the financial crisis, the same sources wrote.
Chrysler officially filed for bankruptcy on April 30 after it had failed to convince the company’s lenders to accept the cash-for-debt swap.
As we reported, under protection, the U.S. would provide up to $3.5 billion in debtor-in-possession (DIP) financing and up to $4.5 billion in exit financing. As for how long the bankruptcy will last, President Obama said it would not take more than two months.
As reported by thestreet.com, in February, Liberty helped save Sirius XM from a potential bankruptcy filing with a $530 million loan infusion giving billionaire John Malone's company a 40% stake in the satellite radio provider. Liberty's rescue of Sirius XM came in two phases, with the first half used to pay off a chunk of Sirius XM's maturing debt.