Liberty Media, Sirius XM Radio reach investment pact

Sirius XM Radio announced early Tuesday that it reached a deal with Liberty Media to receive $530 million investment that will save the company from filing for bankruptcy.

"We are pleased to have come to this agreement with Liberty Media, particularly in light of today's challenging credit markets," Mel Karmazin, the head of Sirius, said in the press release.

The investment will come in two phases; first part includes a $280 million loan and second part consisting of a $150 million loan and an agreement to buy an additional $100 million in loans from other lenders.