The pay-radio service, Sirius XM Radio Inc, has managed to overcome the most critical issue facing it - the intimidating debt limits this year - by finally closing its $530 million cash infusion deal with John Malone's Liberty Media Corp.

The ongoing negotiations between Sirius XM Radio and Liberty Media are hinting at a deal wherein the latter will purchase slightly below half a stake of the former - thereby helping Sirius avert an otherwise-probable bankruptcy, in case it fails to refinance its debt. Reuters' last week reports had said that Liberty is only planning an investment in Sirius, rather than its acquisition.

The US satellite radio service - broadcaster of programmes from Howard Stern and Martha Stewart – Sirius XM Radio intends filing for bankruptcy, in case its negotiations with the holders of its debt turn out to be unproductive.

At Sirius XM Radio Inc's annual shareholder meeting Thursday, more than 150 shareholders in attendance approved a reverse stock split and an increase in shares.