Sirius Bondholders to Trade Debt for Stock

From Bloomberg News

Sirius Satellite Radio Inc. said 91% of its bondholders agreed to exchange their debt for common stock, a requirement for completing a $1.4-billion financing plan.

The plan approved by the company’s stockholders calls for the sale of $200 million of newly issued common stock and the exchange of $519 million in preferred stock for common stock and warrants. Sirius expects to complete the restructuring this week.

The financing will allow Sirius to continue operating into the second quarter of next year, the company said.

Shares of Sirius fell 18 cents, or 25%, to 53 cents on Nasdaq.