But now Sirius XM, the satellite radio company...has hired advisers to prepare for a possible bankruptcy filing, people involved in the process said.

Sirius XM's problems could pave the way for a takeover by EchoStar, the TV satellite company, which has bought up Sirius XM's debt. If Sirius XM files for bankruptcy, EchoStar could seek in court to take over the company. Mr. Ergen, however, may be able to negotiate to convert his shares before bankruptcy at an attractive rate and gain control of the company, these people said.