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Is Sirius XM to Go Bankruptcy?

In the era of the adobe flash player, Sirius XM is the de facto standard for audio and video content in the car. The company has entered into deals with automakers such as General Motors, Honda, Mazda, and Toyota to mention a few. While Sirius has been known for its stellar customer service, its financials aren"t what they used to be. As a result, the company is preparing for bankruptcy filings in the near future. Moreover, the company only has enough current assets to cover its liabilities in 2010.

The company boasts a few notable resources. One notable example is the fact that it owns the patent for the SDARS or Satellite Digital Audio Radio Service. However, the company has had difficulty obtaining a license to use this patent in the first place. This is a shame since the SDARS is a coveted piece of tech. Despite the difficulties of acquiring the patent, the company has not lost sight of its mission to make high-quality digital radio available to consumers.

A look at the company"s recent financials shows the company has had a hard time overcoming its insurmountable financial hurdles. To wit, the company is scheduled to send out a $175 million bill at the end of February. Meanwhile, the company is in the process of laying off several thousand of its employees in the hopes of reversing its stock performance. With a debt to asset ratio of around 42.2% in 2010, the company has not been a particularly healthy financial juggernaut. Indeed, a recent analysis of the company"s balance sheet revealed that the firm was operating with only one major bank, a small handful of trusts, and a smattering of credit unions.

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