US satellite radio giant Sirius XM is considering filing for bankruptcy, The New York Times reported Wednesday. The newspaper, citing "people in involved in the process," said Sirius XM, formed last year through Sirius Satellite Radio's buyout of rival XM Satellite Radio, had hired advisers to prepare for a possible bankruptcy filing.

"Documents and analysis are close to completion and a filing could come in days," the Times said.

The newspaper said that with more than five billion dollars in assets, a Chapter 11 bankruptcy filing by Sirius XM would make it the second-largest bankruptcy this year, following that of packaging manufacturer Smurfit-Stone.

Chapter 11 provides protection from creditors while a company restructures.

The Times said Sirius XM has 3.25 billion dollars in debt and is paying enormous contracts to on-air talent such as "shock jock" Howard Stern, who makes 100 million dollars a year.

Unlike commercial radio, Sirius does not air advertisements and earns its revenue through subscriptions.

The Times noted that the company's fortunes were tied to those of the struggling automobile industry since most of Sirius XM's 20 million subscribers are car owners who receive the satellite radio service with their vehicles.

It said Sirius XM was unlikely to be able to make 175 million dollars in debt payments due at the end of February.

The Times said Sirius XM's problems could pave the way for a takeover bid by EchoStar, a TV satellite company which has bought up Sirius XM?s debt.

Sirius XM is not the only US radio giant in trouble.

The Wall Street Journal reported on Wednesday that Clear Channel Communications Inc.'s debt was trading at sharply lower levels after it announced Monday it was tapping an additional 1.6 billion dollars in credit.

It said investors were growing skeptical about the radio and outdoor advertising giant's ability to pay back its loans.

Clear Channel, which operates more than 800 radio stations, announced last month it was laying off nine percent of its workforce, or 1,850 workers.