XM in Financial Troubles Due to MLB Satellite Radio Deal

XM Satellite Radio Holdings warned in a regulatory filing last week that its financial position may be threatened if it cannot find $120 million worth of financing to adhere to the terms of its high-profile contract with Major League Baseball. The District satellite radio company is required to set aside $120 million in an escrow account as part of its eight-year contract with baseball, giving it the right to air news, scores, highlights and live game coverage. In July 2006, XM secured a two-year surety bond to cover that obligation. That bond is set to expire June 30, and XM is seeking another source of financing to cover its obligation to baseball, the company said in a filing with the Securities and Exchange Commission.
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/25/AR2008052501702.html