Dish DBS, the longtime satellite TV operator that is now a subsidiary of EchoStar, has filed for Chapter 11 bankruptcy protection.
The company took the step Tuesday in federal bankruptcy court in Houston, TX, after its debts mounted and it faced a thicket of litigation. A press release accompanying the court filing said it was a pre-packaged restructuring plan backed by 88% of the holders of Dish bonds.
Charlie Ergen, who co-founded EchoStar and Dish, recently returned as chairman and CEO to steer the company through its recent challenges. EchoStar, which merged with Dish in 2024, has been struggling to repay $25 billion in debt, and Ergen has publicly warned that bankruptcy was a possibility.
Even prior to the merger, Ergen had been working to pivot from the pay-TV business, where Dish now has just 5 million subscribers and streaming sibling Sling TV has another 2 million, toward wireless telecom. With wireless spectrum hitting the market due to the Sprint-T-Mobile merger and then Elon Musk’s Starlink looking to ramp up in the sector, it seemed more attractive than the cord-cutting-ravaged pay-TV business. But it is still entails plenty of risk, especially given how tightly regulated the spectrum is due to security concerns.
EchoStar said its “brands, customers, operations, and employees will not be affected” by the Chapter 11 filing, adding that it expects Dish to emerge from the process during the July-to-September quarter. Once it does so, EchoStar says it will be “stronger and better able to take advantage of future opportunities.”
A $20 billion sale of spectrum assets to AT&T has been delayed due to what EchoStar called “unforeseen delays.” The holdup played a significant role in bringing about the bankruptcy filing. EchoStar says it will promptly repay most of its debt once the transaction is completed.
“EchoStar has been at the forefront of telecommunications for over 45 years, and these steps will position the business for an even stronger future,” Ergen said in a statement. “We are operating as usual throughout this process, delivering the same high-quality services that our customers expect. I want to thank our team members for their relentless focus and our customers and partners for their continued support.”
