DISH DBS files prepackaged chapter 11 to repay debt, wind down wireless

DISH DBS Corporation and certain subsidiaries, including DISH Wireless L.L.C., filed prepackaged chapter 11 cases on June 30, 2026, in the United States Bankruptcy Court for the Southern District of Texas, Houston Division, seeking confirmation of a joint reorganization plan.

Holders of more than 88% of DISH DBS's secured and unsecured notes, who also hold more than $8.8 billion of DISH Wireless debt, have signed a Restructuring Support Agreement originally dated March 19, 2026. The Filing Entities are targeting emergence from chapter 11 before the end of Q3 2026.

The filing was triggered by delays in the closing of a previously announced spectrum sale to AT&T. DISH DBS does not currently have sufficient liquidity to repay $2.0 billion in 7.75% senior secured notes due July 1, 2026, while meeting ordinary course obligations. Those notes are expected to be repaid in full in cash following the close of the AT&T transaction, which is valued at $20.25 billion in net proceeds, or on the effective date of the plan.

DISH Wireless, which formerly operated a facilities-based 5G wireless network, will use the chapter 11 process to dispose of remaining assets and resolve outstanding creditor claims. The FCC has separately required EchoStar Corporation (NASDAQ: ECHO) to establish a $2.4 billion escrow fund upon closing of the AT&T transaction to address qualified claims related to the shutdown of the DISH Wireless 5G network, with claims under $100,000 prioritized.

The restructuring does not include EchoStar Corporation, Hughes Satellite Systems Corporation, or the entities operating Boost Mobile and Gen Mobile. DISH TV and Sling TV operations and employees are also not affected by the filing.

White & Case LLP is serving as legal counsel and FTI Consulting, Inc. as financial advisor to the filing entities.

"We are operating as usual throughout this process, delivering the same high-quality services that our customers expect," said Charlie Ergen, co-founder and Chairman of EchoStar.

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