Sirius XM prepares to go bankrupt as debt repayments due soon

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459px-Sirius_XM_Satellite_Radio_logo.svg The merged company of satellite radio companies, Sirius and XM, could face going into a possible bankruptcy as it tries to pay off its $3.25 billion debt that it had used to pay its talent, like shock-jock Howard Stern and Martha Stewart, and launching new satellites into space.

Sirius XM is soon to pay $175 million of its debt at the end of February, but it could be unlikely to pay back its debt.

According to the New York Times, it has already hired advisers to prepare a possible bankruptcy filing – and if it does file a bankruptcy protection, it would become one of the largest causalities from this year’s economic crisis; and with over $5 billion of assets, it would be the second-largest filing this year.

However, EchoStar could take over the company if it its financial status doesn’t improve during a very short time, as it has bought up the company’s debt. But, if it does go bankrupt, it is unknown what will happen to the 30 million customers subscribed to the merged service.