Sirius XM Scrambles to Avoid Bankruptcy; Exchanges Notes

Authored by Mark Hefflinger on February 13, 2009 - 9:08am.

New York - Satellite radio firm Sirius XM (NASD: SIRI) said on Friday that it is scrambling to avert the possibility of having to declare bankruptcy next week.

The company said that it has exchanged $172.5 million in senior notes due in December for new notes due in 2011, and also is in "discussions" with others to try and refinance more of its debt.

If the company cannot complete the deals, it could be forced to file for Chapter 11 as early as Tuesday.

Sirius XM still has $175 million due on Tuesday and another $227.5 million due in December.

EchoStar, the owner of satellite TV firm DISH Network, in recent weeks has been accumulating the company's debt, hoping to eventually gain control of the company.

In recent days, however, Liberty Media, the majority owner of DirecTV, has joined the discussions.

http://www.siriusradio.com