UPDATE 1-Sirius preparing possible bankrupty filing-NY Times

NEW YORK Tue Feb 10, 2009 5:46pm EST

NEW YORK Feb 10 (Reuters) - Sirius XM Radio Inc (SIRI.O) has been working with its advisers to prepare for a possible bankruptcy filing, the New York Times reported on its website on Tuesday, citing people close to the company.

The move could put pressure on satellite television company EchoStar Corp (SATS.O), which reportedly holds a substantial amount of Sirius XM debt. The Wall Street Journal reported Monday that EchoStar chief Charles Ergen made an offer to take control of the satellite radio company late last year, but he was rebuffed.

Sirius officials did not respond to several telephone and email messages, and EchoStar declined comment.

Sirius has been working with restructuring expert Joseph A. Bondi of Alvarez & Marsal and bankruptcy lawyer Mark Thompson of Simpson, Thacher & Bartlett to help prepare a Chapter 11 filing, the New York Times reported, adding that a filing could come within days.

A Simpson, Thacher spokeswoman declined comment, and Bondi was not immediately available for comment.

Sirius has also been working with investment bank Evercore Partners, the newspaper said. Evercore could to be reached immediately. (Reporting by Anupreeta Das and Yinka Adegoke; editing by Jeffrey Benkoe)

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