The path is clear for Sirius Satellite Radio [Nasdaq: SIRI] to operate without the financial questions that have followed it in recent months after its debt holders approved a recapitalization.

On Tuesday, Sirius stockholders approved the recapitalization plan (ST, March 4). The plan could not be implemented until debt holders gave their consent, according to company officials. Debt holders agreed to exchange their debt for common stock in a recapitalization that also exchanges preferred stock for common stock. In addition, $200 million will be pumped into the operation through the company’s sale of newly issued common stock.