Sirius XM Granted Exception to Bypass Shareholder Approval for Liberty Deal

[Satellite Today 02-20-09] Nasdaq has granted Sirius XM Radio’s request to issue new preferred stock without shareholder approval in connection with its agreements with Liberty Media Corp., Sirius XM announced Feb. 19.
    While the Nasdaq rules generally require shareholder approval prior to the issuance of securities that are convertible into more than 20 percent of the outstanding shares of a listed company, Sirius XM said it is relying on an exception in cases when the delay in securing shareholder approval would seriously jeopardize the financial viability of the enterprise.
    Liberty Media reached an agreement with Sirius XM Feb. 18 to finance the company with $530 million that will keep Sirius XM from having to file for bankruptcy.