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(Updated with premarket trading)

NEW YORK (

TheStreet

) --

Sirius XM Radio

(SIRI) - Get Sirius XM Holdings, Inc. Report

said Gary Parsons has resigned as chairman of the satellite-radio provider and will be replaced by independent director Eddy Hartenstein.

Hartenstein is publisher and CEO of the

Los Angeles Times

.

Parsons was founder of XM Satellite Radio and served as chairman of the company prior to its merger with Sirius in the summer of 2008. He also resigned as a director, putting Sirius in compliance with Nasdaq's independent director requirements.

"While it has been a privilege to serve Sirius XM as chairman and to have guided the company successfully through the merger of Sirius and XM, I believe now is the right time to step aside," Parsons said in a statement.

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Parsons said he is leaving the company at a time when it has begun to generate positive cash flow and has "substantially improved" its financial condition.

Earlier this month, Sirius

posted a third-quarter loss

of $149 million, or 4 cents a share. Adjusting for non-recurring items, the loss was $11 million, which amounts to break-even on a per-share basis.

Sirius still has a long way to go before it can be profitable.

Shares of Sirius have fallen more than 80% over the past three years and the company is in the hole for more than $10 billion and living off debt.

The stock closed Thursday at 66 cents. It was up a cent to 67 cents in recent premarket trading.

-- Reported by Joseph Woelfel in New York

.

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