NEW YORK (CelebrityAccess MediaWire) — A group of creditors for embattled Sirius XM Radio Inc have indicated that they will push for the removal of CEO Mel Karmazin if the company files for bankruptcy protection. The creditors would seek to have a trustee appointed to oversee the company.
"Creditors believe that a precipitous bankruptcy filing will not be in their best interests," Edward Weisfelner, a lawyer representing the creditors told Bloomberg. "Our group is concerned that management not use the threat of bankruptcy as a negotiating tool."
The company has been in negotiations with John Malone's Liberty Media Corp. for a bridge loan of "several hundred million dollars" the New York Post reported. Any moves to secure capital must happen quickly as payment on $175 million in bonds held by EchoStar will come due on Feb. 17, a part of the nearly $3.25 billion in total debt on the books for the company.
Formerly two competitors, Sirius and XM, the two firms completed a merger in July of 2008 and the emergant company has been battling the economy since with their stock price having plunged a precipitous 94% from its post-merger price. – CelebrityAccess Staff Writers