Key facts
- Dish DBS and its wireless subsidiaries filed for Chapter 11 bankruptcy protection.
- The filing is a prepackaged restructuring plan.
- The company could not repay $2 billion in senior secured notes due July 1.
- Delays in a spectrum license sale to AT&T contributed to the liquidity shortage.
- Over 88% of Dish's credit holders have agreed to the restructuring plan.
EchoStar's satellite pay-TV unit, Dish DBS, and its wireless subsidiaries have filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. The filing seeks court approval for a prepackaged restructuring plan designed to address impending debt maturities and facilitate the wind-down of Dish Wireless's 5G network operations.
The immediate catalyst for the bankruptcy was Dish DBS's inability to repay $2 billion in 7.75% senior secured notes due July 1. The company had anticipated using proceeds from a spectrum license sale to AT&T, agreed upon in August 2025 for $23 billion, to meet this obligation. However, unexpected delays in the closing of this deal left Dish DBS without sufficient liquidity.
According to the company, holders of more than 88% of Dish's credit, including those holding over $8.8 billion in Dish Wireless debt, have agreed to the prepackaged plan. This agreement is expected to expedite the bankruptcy process and allow for an exit by the third quarter. Charlie Ergen, co-founder and chairman of EchoStar, stated that these steps will position the business for a stronger future while assuring customers that services will continue as usual.
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. White & Case and FTI Consulting are advising Dish DBS on the restructuring.