From Wired’s EPICENTER:

Sirius XM got a reprieve from bankruptcy Tuesday by agreeing to an under-the-gun deal with Liberty Media which will ensure at least three years of continued service. But the respite does not come cheaply: The parent company of DirectTV is taking a 40 percent stake in the once high-flying company and providing an immediate cash fusion at payday loan store rates so it can meet a $172 million obligation that is due today.

For the beleaguered Sirius XM, this deal or something like it was an absolute necessity. It owed $172 million in convertible notes due Tuesday, has another $750 million or so in loans due later this year, and its cash reserves were running low. Last week, the company was revealed to be preparing for bankruptcy, but this deal averts that scenario.

In the first phase of the $530 million deal, Liberty Media will loan Sirius XM $280 million – $250 million of which the satellite radio company receives Tuesday, in order to deal with the immediately-maturing notes. This loan bears a whopping 15 percent interest rate, but Sirius XM won’t have to pay it back until December 2012.