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Sirius warns of possible stock delisting, bankruptcy
Posted: Wed, Jan 15, 2003, 9:01 AM ET (1401 GMT) Satellite radio company Sirius warned investors in an SEC filing this week that the company's stock could be delisted from the NASDAQ stock exchange and that the company could be forced to file for bankruptcy protection. In documents filed with the SEC regarding a proposed restructuring plan, the company noted that it has $180 million in cash on hand as of December 31, 2002, and will run out of money in the second quarter if the restructuring plan is not approved. If that happens, Sirius would have to file for Chapter 11 bankruptcy protection. The company also warned that its stock could be delisted from the NASDAQ National Market because as of December 23, 2002, the stock had closed below $1/share for 30 consecutive days. Sirius has until March 24 to get the stock to close above $1 for 10 consecutive days. If the stock is delisted, it would make it more difficult for the company to raise additional capital. On Tuesday the stock broke through the $1 barrier, closing up 49 cents to $1.28, largely due to an upgrade by brokerage Salomon Smith Barney.
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