Sirius XM may declare Chapter 11 bankruptcy

Satellite radio operator Sirius XM is considering filling for Chapter 11 bankruptcy.

The company, the result of a merger between previously rival operators Sirius and XM in July 2008, has $300 million in debt due next week.

The New York Times reports that Sirius XM has been working with Alvarez & Marsal and bankruptcy lawyer Mark Thompson of Simpson, Thatcher & Bartlett to help prepare a Chapter 11 filing.

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The move will put pressure on Charles Ergen, who controls a satellite-television empire including the Dish Network Corporation and EchoStar to bid for the company as he holds a majority of the $300 million debt.