This money will be used to pay off the $171.6 million in debt that is due today, to keep Sirius from being forced to file for bankruptcy.  The remaining money will be kept by Sirius to be used for general business purposes.

Phase two will see $150 million being given directly to XM Satellite Radio, now entirely owned by Sirius.  Upon the end of phase two, Sirius will give Liberty Media, who owns a controlling interest in DirecTV, 12.5 million shares in the company, and two seats on the board.  These conditions are not solid yet, and could see some readjustments as the deal closes.