Liberty Media (NSDQ: LINTA) will offer Sirius XM a $250 million secured loan designed to “rescue” the company from the advances of EchoStar (NSDQ: SATS) CEO Charlie Ergen, the FT reported. The EchoStar head has been attempting to win control of Sirius in recent weeks by purchasing the troubled satellite radio provider’s distressed debt while at the same time offering to invest cash in the business.

SEE ALSO: Sirius Cleans Up Some Of Its Debt; Still In Trouble, Though

Liberty’s offer is intended to block Ergen from controlling Sirius (NSDQ: SIRI). The loan is considered the first part of a “multi-stage” deal to help Sirius meet a fast-approaching debt payment, the FT said, citing unidentified sources. The Liberty/Sirius deal involves a debt-for-equity swap and would leave Liberty Chairman John Malone’s group, which controls EchoStar’s larger rival DirecTV (NYSE: DTV), with an otherwise unspecified stake in Sirius. The other stages of the deal weren’t clear. The moves follow Sirius’ warning that it would file for bankruptcy protection if it couldn’t restructure its debt by this Tuesday. In all, Sirius has $3.25 billion in outstanding debt; $1 billion of that is due this year.

Update: The WSJ says Liberty and Sirius hope to announce a deal before the markets open Tuesday: “Under the proposed agreement, Liberty would invest several hundred million dollars in Sirius in two stages and eventually control about half of the company, the people (familiar with the matter) said. Mr. Ergen had been seeking outright control in return for a roughly $500 million investment and an agreement to restructure about $400 million in Sirius debt that he holds.”

The Journal also looks a little deeper at Sirius CEO Mel Karmazin’s ruinous decision not to refinance more than $1 billion of the satellite radio company’s debt last summer.

Much more on the saga at our Sirius channel