Read an article via Yahoo! the company may file for Chapter 11 protection.

Service no more soon?

 

Chapter 11 protection doesn't mean they will shut down.

 

Chap 11 bankruptcy means they will negotiate with their creditors to seek different terms on the amounts they owe the creditors. It also means they reorganize, and usually new/different management takes over.

As a subscriber, paying say $10-20 per month, I'd guess you're a regular and common customer (not a formal legal definition). If you pre-pay for a subscription, say for a year, I wonder if that is treated any differently?

 

I wonder if this is how they break the contract with Howard Stern??? If you paid with a credit card, you may have some charge-back opportunity if they cease service.

I'm guessing if they go chapter 7 or 11, the stockholders will hold worthless shares - everyone else will get theirs before the investors.

 

Looks like Liberty Media has come in and saved the satellite service!

 

Great News. Perhaps when the financial crisis is over the stock might even be worth something.