NEW YORK (Reuters) – Sirius XM Radio said its XM Satellite has refinanced some of its outstanding debt, but acknowledged the pay-radio provider may file for bankruptcy protection as soon as Tuesday.
Sirius, under pressure to address some $1 billion in debt this year, said on Friday it exchanged $172.5 million aggregate principal amount of senior notes due December 2009 for newly issued notes due in June 2011.
The New York-based company added that it is in talks to refinance some of its other debt, but didn't disclose the parties involved.
However, a source familiar with the talks said on Friday that discussions with Liberty Media were friendly and don't include buying out Sirius' equity. Any possible agreement could include a loan to Sirius, paying off its debt, or assuming the debt obligations, the source said.