Chapter 11 = 11 Cents Per Share for Sirius XM

They aren’t the only ones filing for bankruptcy lately, but it’s interesting that even a “new media” company like Sirius XM satellite radio is contemplating seeking relief from creditors:

 Sirius XM Radio Inc. has hired advisers to prepare for a possible bankruptcy filing, which could come in days, according to a news report. 

The New York Times said late Tuesday documents and analysis of a potential Chapter 11 filing are nearly complete, say people close to the company. 

Sirius, whose radio personalities include shock jock Howard Stern, has struggled to refinance its debt load at a time when banks are skittish about lending. About $1 billion worth of debt comes due in 2009. 

One of the supposed Sirius advantages was commercial-free music, available anywhere. But with Pandora available on the Web providing the same service (and customized channels that fit individual interests), and also with an iPhone application, that seems like a less distinct advantage for Sirius XM.
I’ve enjoyed the rare occasions when I’ve had a rental car with satellite radio, but can’t see paying a monthly fee for the service.
Apparently I’m not alone.