Sirius XM Could File for Bankruptcy as Early as Tuesday

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The era of satellite radio could be taking a dark turn.

Representatives for financially strapped Sirius XM Radio said yesterday that they might have to file for bankruptcy as early as Tuesday if they cannot successfully negotiate with the holders of its debt.

Sirius is fighting against attempts for control by Charlie Ergen, the chief executive of Dish Network and sister company EchoStar. Ergen bought much of a $300 million batch of discounted Sirius bonds that come due next week. Sirius had rejected a previous offer by Ergen for control of the company.

A bankruptcy filing for Sirius would give it the right to terminate contracts with on-air talent, such as Martha Stewart and Howard Stern, who has a five-year, $500 million deal. A Chapter 11 filing also could crimp Sirius’ growth because subscribers might shy away from a company in bankruptcy. Sirius has nearly 20 million listeners and provides a wide range of music, sports and talk radio.

Liberty Media Corp. is in talks with Sirius about possibly investing in the company, a move that could fend off Ergen.

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But the DirecTV Group Inc., a Dish rival controlled by Liberty Chairman John Malone, is not involved in the negotiations, according to a person close to the situation. The person spoke on condition of anonymity because he is not authorized to talk about the negotiations. Liberty’s participation in the talks was reported earlier by The Wall Street Journal.

Analysts said they didn’t think DirecTV would want a satellite radio business or its satellites. DirecTV, the nation’s largest satellite TV company, has launched new satellites and is focusing on enhancing its TV service.

Sirius and Liberty declined to comment.