spacetoday.net: Sirius wins approval for refinancing plan

Posted: Thu, Mar 6, 2003, 10:44 AM ET (1544 GMT)
Satellite radio company Sirius announced Wednesday that over 90 percent of its debtholders have approved a plan to convert their debt into stock, a key part of a financial restructuring plan designed to keep the company out of bankruptcy. Sirius reported that holders of 91 percent of the company’s debt, accounting for over $630 million, agreed to exchange their debt for common stock. The company said the agreement clears the way for the rest of its restructuring plan, including a $150 million cash investment by Oppenheimer Funds and $25 million each by Apollo Management and The Blackstone Group. The $200 million in cash will give Sirius over $300 million in cash, enough to continue operations into the second quarter of 2004. Sirius had warned when it announced the refinancing package several months ago that the company would be forced to seek bankruptcy protection if the plan was not approved.