may file for Chapter 11 bankruptcy protection "within days," according to a published report late Tuesday, as the satellite radio company continues to grapple with outstanding debt.
According to a report in
The New York Times
, Sirius XM has been working with the restructuring expert Joseph Bondi of Alvarez & Marsal and the bankruptcy lawyer Mark Thompson of Simpson Thatcher & Bartlett to help prepare a Chapter 11 filing. The report cited people close to the company, who said documents and analysis are close to being completed and a filing could come within days.
After gaining 3.6% during Tuesday's down session, shares of Sirius XM were lower by 2% after hours to 11 cents a share.
report comes one week before a chunk of Sirius XM's maturing debt will come due. Sirius XM reduced its total debt due on Feb. 17 to about $175 million, but the future is a bit unclear. The company still has approximately $3.4 billion in debt, with just under $1 billion due before the end of the year, and its stock has fallen sharply since the July merger between Sirius Satellite Radio and XM Satellite Radio.
has acquired a significant portion of Sirius XM's debt and could seize control of the company's attractive assets.
EchoStar, which sells set-top boxes and was the former parent of
, has acquired part of a $300 million tranche of Sirius XM debt set to mature next week, according to
The Wall Street Journal
, which cited "people familiar with the matter."
went on to say that Charles Ergen's EchoStar could also be buying Sirius XM's senior bank debt, which comes due in May.