Friday, February 13, 2009

Sirius reworks some debt, but bankruptcy still possible

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.

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