EchoStar is preparing to file its Dish DBS satellite TV unit for chapter 11 bankruptcy as soon as Tuesday, according to The Wall Street Journal.
Backing the filing is a restructuring agreement EchoStar reached earlier this year that has the support of bondholders holding more than 82% of Dish DBS’s roughly $10 billion in outstanding debt
According to an EchoStar securities filing, the agreement encompasses a series of transactions aimed at cutting the company’s debt load, settling ongoing litigation with bondholders, and broadening EchoStar’s options for potential dealmaking. Dish DBS has retained White & Case as legal counsel and FTI Consulting as financial advisor for the restructuring process, The Journal reported. EchoStar, based in Englewood, Colorado, carries roughly $25 billion in total debt and has faced years of subscriber losses across its pay TV businesses.
Pay TV revenue came in at $2.26 billion for the most recent quarter, representing a year-over-year drop of more than $260 million; over the same period, the company shed approximately 177,000 net subscribers. The bankruptcy filing follows EchoStar’s failed attempt to merge Dish Network with DIRECTV in 2024. Bondholders holding more than $10 billion in Dish Network and Dish DBS debt ultimately sank that transaction by declining to take part in a required debt exchange, arguing it was structured to shift billions of dollars in assets to other companies under EchoStar founder Charlie Ergen’s control.