EchoStar's Dish DBS, wireless units file for prepackaged bankruptcy
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FILE PHOTO: A satellite model is placed on EchoStar Satellite Services logo in this picture illustration taken April 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
June 30 (Reuters) - EchoStar's satellite pay-TV unit Dish DBS and its wireless subsidiaries have filed for Chapter 11 bankruptcy protection, seeking court approval for a prepackaged restructuring plan.
The move addresses impending debt maturities and facilitates the wind-down of Dish Wireless's 5G network operations following an unexpected delay in a spectrum license sale to AT&T.
Dish DBS said on Tuesday the bankruptcy filing, initiated in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, was primarily driven by its inability to repay $2 billion in 7.75% senior secured notes due July 1.
The company had been counting on proceeds from a spectrum deal announced in August 2025 with AT&T, under which EchoStar agreed to sell about 50 megahertz of its nationwide spectrum for $23 billion.
However, delays in the closing of the deal left Dish DBS without sufficient liquidity to meet the obligations, the company said.
Holders of more than 88% of Dish's credit, including those holding over $8.8 billion in Dish Wireless debt, have agreed to the plan, expected to fast-track the bankruptcy and allow for an exit by the third quarter, the company said.
"EchoStar has been at the forefront of telecommunications for over 45 years, and these steps will position the business for an even stronger future," said Charlie Ergen, co-founder and chairman of EchoStar.
"We are operating as usual throughout this process, delivering the same high-quality services that our customers expect."
Under the prepackaged plan, all amounts owed on the July 1 notes will be paid in full in cash promptly after the AT&T transaction closes or upon the effective date of the plan.
Law firm White & Case and FTI Consulting are advising Dish DBS on the restructuring, the company said.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Vijay Kishore)
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