Martha Stewart Living Radio on Sirius XM may be in jeopardy with the satellite radio company reportedly preparing for possible bankruptcy. Lawyers and advisors have been hired to help steer Sirius XM through the next step, reports the New York Times. It is still unclear how a bankruptcy would affect customers. Service is unlikely to be interrupted, but the company might have to terminate contracts with high-priced talent like Martha Stewart, the Times reports.

"A bankruptcy would make Sirius XM one of the largest casualties of the credit squeeze. With over $5 billion in assets, it would be the second-largest Chapter 11 filing so far this year, according to Capital IQ. Sirius XM, which never turned a profit when both companies were independent, is laden with $3.25 billion in debt."