http://biz.yahoo.com/bw/030117/170068_1.html

Press Release Source: SONICblue Incorporated

Houlihan Lokey Howard & Zukin Advises SONICblue on Exploration of Strategic Alternatives
Friday January 17, 8:00 am ET


SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 17, 2003--SONICblue(TM) Incorporated (Nasdaq:SBLU - News), assisted by its financial advisor, Houlihan Lokey Howard & Zukin, is in the process of evaluating available strategic options in light of the amount of debt on the Company's balance sheet. Among the various options the Board has authorized to be explored is the identification of new financial or strategic partners who might invest in, or acquire, the Company, its business units, or assets.
"SONICblue has improved its operational performance, and its new product lines are well poised for 2003," said Gregory Ballard, the Company's CEO. "The goal of this process is to clear the way for the Company's businesses to continue their strong growth in the market, unburdened by the amount of debt now carried on the Company's balance sheet. "

Yes, this article also on Yahoo's News site has some indication of timescales:

With 2 known dates when debt falls due [March ($16.5 million) and October ($178 million)] this year, something will need to be done sooner than later to get things back on track.

This story may also explain why the story about the Pearl was published in the news - that gives investors and shareholders confidence that SB has products on the go that will help it recover from its debt mountain.

I just hope that work on stuff like the Pearl is not a little too late to save SB - and that holidays sales were strong.

Any idea on how SonicBlue has kept from being delisted? It went under $1 back in July (and has remained so) and now at $0.349. I know NASDAQ had granted some general extensions and there are some things they could have done for a 180 day extension (for a total of 210 days), but if they get delisted...

From what I understand, the listing got moved to a different index that does not require delisting at $1, or has more generous timeframes. There was a press release on SonicBlue's site a while ago...