Sirius XM prepares to file Chapter 11 bankruptcy

To borrow and bastardize the ever-popular words of Farrokh Bulsara: another company is biting the dust. Or is about to, it seems.

The New York Times recently reported that satellite radio giant Sirius XM has hired advisors to prepare for a possible bankruptcy filing. This comes as $175 million of debt payment looms overhead at the end of February.

Sirius acquired one-time competitor XM Satellite Radio in 2007, and has yet to turn a profit before or after the acquisition. Currently, the company is sitting on $3.25 billion of debt, and is set to be the second largest Chapter 11 filing this year with $5 billion in assets. (For those keeping score at home, Smurfit-Stone Container Corp. takes the #1 spot.) Not surprisingly, their problems parallel those of the auto industry, which makes up the bulk of Sirius XM's 20 million customers.

The Times wrote that it's still unclear how bankruptcy would affect customers, though it may mean expensive talent like Howard Stern (who signed a five-year $100 million contract) and Martha Stewart would have to find another home.